Friday, May 24rd, 2019
Indices: US stocks were higher in today’s session, with the Dow Jones Industrial Average closing up 95 points or 0.37%. The Russell 2000 was the strongest of the major averages, finishing up 0.85%.
Sectors: Financials led, gaining 0.71%. Consumer Staples lagged, falling 0.33%.
Commodities: WTI Crude Oil futures were higher by 1.28% to settle at $58.63 per barrel. Gold futures were slightly lower by 0.14%, and are trading around $1,283 per ounce.
Currencies: The US Dollar Index fell 0.28%.
Interest Rates: The US 10-year Treasury Yield moved higher to 2.324%.
As a reminder, both the US Equity and Bond Markets will be closed on Monday, May 27th in observance of Memorial Day.
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 an article on StockCharts.com, by David Keller (@DKellerCMT). It’s a ratio chart of the Consumer Discretionary sector relative to the Consumer Staples sector. When the ratio is falling it means that Discretionary stocks are underperforming Staples and vice versa. Discretionary was outperforming Staples in 2019 up until the beginning of this month when the ratio broke the established trendline and reversed into a downtrend. Keller notes that he “loves to this ratio as a barometer of risk on vs. risk off within the consumer sectors.” We like this chart because it highlights the rotation we’ve been seeing away from the more cyclical sectors into more defensive areas of the market.
Quote of The Day
“Success is how high you bounce when you hit bottom”
– George S. Patton (U.S. Army General)
The S&P 500 has had a flat 200-day moving average since October of last year. By definition, we’re in a trendless market. In this article, we discuss why cash is king in these market environments and why sometimes the best trade is no trade at all.
Searching for Growth – Real Vision
Dan Russo, chief market strategist at Chaikin Analytics, was featured on Real Vision’sTrade Ideas segment today where he shared the technical setups that he likes the most right now in both the Software and Real Estate sectors.
Let the Chips Fall Where they May – Dana Lyons
In this piece, Dana Lyons takes a look at Semiconductor stocks. Using a monthly chart, he explains why it may be too early to decide the fate of chip stocks despite the group falling precipitously this month.
Two Must-See Charts About the Recent Volatility in Markets – Bloomberg
In this video, Greg Calderone and Abigail Doolittle address the current volatility environment. They explain that despite the choppiness in the S&P 500, the Vix and the SKEW index aren’t suggesting any major long-term concerns for the market.
Technology vs. Utilities – Bespoke
The Utilities sector has been the best performing sector so far in May, while Technology has been the worst. In this note from Bespoke, they explore the apparent shift away from cyclical sectors toward more defensive areas of the market.
Top 10 Tweets
The Dow is down 5 weeks in a row, while it's above its 50 week moving average.
You'd think that this is bullish for stocks. That's what I thought too, until I ran the #'s
It's mostly bearish pic.twitter.com/lAxSxuaWjN
— Troy Bombardia (@bullmarketsco) May 24, 2019
— Abigail Doolittle (@TheChartress) May 24, 2019
Trannies Don't Lie (3) pic.twitter.com/CROkoIQG7L
— Lawrence McDonald (@Convertbond) May 24, 2019
The PhD know-it-alls are at it again… pic.twitter.com/ABO5xXsHJ9
— Cory Venable CMT (@CoryLVenable) May 24, 2019
— Pietro Di Tora 300k (@Meteo1970) May 24, 2019
#HedgeFunds once again showing aggression in adding to net shorts in 10-yr note futures — at 28-wk high. They were probably not pleased with Thu's 10-bp drop in $TNX, slicing through 2.4% support. $TLT pic.twitter.com/dfdplks9Zk
— hedgopia (@hedgopia) May 24, 2019
— Charlie Bilello (@charliebilello) May 24, 2019
— jeroen blokland (@jsblokland) May 24, 2019
— Dow (@mark_dow) May 23, 2019
If a stock is down 50% from its high, you are not "buying a dip" you are buying a stock in its own personal bear market and your risk management sucks
— Brian Shannon, CMT (@alphatrends) May 24, 2019