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Today’s Summary
Tuesday, May 28th, 2019
Indices: US stocks closed lower to start the week, with the Dow Jones Industrial Average falling 238 points or 0.93%. The S&P 500 fell 0.84% to close at a fresh two-month low.
Sectors: Communications led, gaining 0.53%. Utilities lagged, falling 1.67%.
Commodities: WTI Crude Oil futures were higher by 0.90% to settle at $59.14 per barrel. Gold futures were lower by 0.39%, and are trading around $1,279 per ounce.
Currencies: The US Dollar Index rose 0.34%.
Interest Rates: The US 10-year Treasury Yield moved lower to 2.266%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared in a blog post by Chris Kimble. It’s a daily candlestick chart of WTI Crude Oil futures pointing to further downside from here. Not only was Crude unable to hold above the 61.8% Fibonacci retracement level, but it’s also currently breaking key support. Kimble notes that Crude Oil and the S&P 500 have been highly correlated lately. Therefore, if Crude Oil continues to weaken, then it’s reasonable to expect stocks to be under pressure as well.
Quote of The Day
“Why is the man who invests all your money called a broker?”
– George Carlin (Comedian)
This week, we take a look at a chart of the Australian Dollar versus the Japanese Yen (AUD/JPY). This currency pair often serves as a good barometer of global risk appetite. It’s currently sitting at a key inflection point and is, therefore, worth keeping an eye on.
US Treasury yields have continued to fall to their lowest levels in years. In this piece, we explore how this weakness from interest rates will impact both equities and bonds.
Adam Koos is the President and Portfolio Manager at Libertas Wealth Management Group. He recently earned his Chartered Market Technician (CMT) designation and wrote this article describing the benefits of going through the CMT program.
Here’s an interesting interview with writer and CMT, Michael Kahn. He walks viewers through his technical approach to markets.
Legendary technical analyst, John Roque made an appearance on CNBC recently where he compares shorting stocks to the way that lions hunt. He explains that lions will typically stalk the weakest animal in the pack. Similarly, if you’re looking to short the market you want to be going after the weakest stocks in the group to boost your chances of success.
Top 10 Tweets
$SPY levels of interest below
200DMA and key VWAP levels pic.twitter.com/vrYFAfUYBK— Brian Shannon, CMT (@alphatrends) May 28, 2019
The S&P futures were unable to clear important resistance today….that's when we started to fail…you need to watch symmetry!! pic.twitter.com/ZqzvP4D9Hs
— Carolyn Boroden (@Fibonacciqueen) May 28, 2019
50% retracement in 10-yr yields.
S&P 500 4.20% off the May 1 all-time highs.
Stocks and bonds are not pricing the same economic outcome. pic.twitter.com/PSoAaGsDHW— JP Scott, CFA (@JackPScott) May 28, 2019
How anxious are investors? They plowed a record amount into an expensive, imperfect hedge against a 15% drop by October. pic.twitter.com/XKiVOxvOD8
— SentimenTrader (@sentimentrader) May 28, 2019
Keep in mind I'm from Indiana but $CORN is putting in an impressive month so far. pic.twitter.com/xrYJDmeuDK
— Gregory Krupinski (@G_krupins) May 28, 2019
What's the deal with Corn lately?! pic.twitter.com/WN1hCOzV5P
— traderstewie (@traderstewie) May 28, 2019
The gap between 10-year & 3-month U.S. yields just went the most negative since 2007. pic.twitter.com/T2hIdxdwft
— Lisa Abramowicz (@lisaabramowicz1) May 28, 2019
The gold-silver ratio (a monthly chart here) keeps pushing higher. Presently at the highest level since March 1993 on my Dollar-based synthetic pic.twitter.com/rNC0sDNFYc
— John Kicklighter (@JohnKicklighter) May 28, 2019
Comparing 2 common strategies:
1. Buy the S&P only when > its 200 dma
2. Buy the S&P only when its 50 dma > 200 dma (golden cross)Neither of these outperform buy & hold on their own. But combined, they outperform
Yellow line: sell S&P only when < 200 dma AND death cross pic.twitter.com/0N4pKMNPMs
— Troy Bombardia (@bullmarketsco) May 28, 2019
In this business, this is what's referred to as a "weak-ass close." pic.twitter.com/FkjRYghTF1
— Eddy Elfenbein (@EddyElfenbein) May 28, 2019