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Today’s Summary
Thursday, June 25th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 300 points or 1.18%. The S&P 500 gained 1.10%. The Nasdaq closed back above 10,000, rising 1.09%. The Russell 2000 outperformed, moving higher by 1.70%.
Sectors: 10 out of the 11 sectors closed higher. Financials led, gaining 2.65%. Utilities was the only sector to close lower, falling 1.24%.
Commodities: Crude Oil futures moved higher by 1.87% to $38.72 per barrel. Gold futures slipped 0.25% to $1,771 per ounce.
Currencies: The US Dollar Index rose 0.18%.
Interest Rates: The US 10-year Treasury yield inched higher to 0.688%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SOX buyers at the 20 day showing up, again pic.twitter.com/NxcK9YF4VP
— Aaron (@ATMcharts) June 25, 2020
Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). It’s a daily candlestick chart of the Semiconductor Index ($SOX) over the past year. The top three holdings in this index include; NVIDIA ($NVDA), Intel ($INTC), and Broadcom ($AVGO). Semi’s broke out to all-time highs earlier this month, and have been consolidating at the former highs ever since. Aaron points out that $SOX bounced off the 20-day moving average yet again today. As you can see, price has managed to find support at this short-term moving average several times since the March low. Semi’s are an important bellwether for the broader market. It’s constructive to the overall bull case to see buyers continue to step into this key industry group at the sight of any short-term weakness.
Quote of the Day
“He who wishes to be rich in a day will be hanged in a year.”
– Leonardo da Vinci
Top Links
Rising Instability After a Historic Stock Market Rally – SentimenTrader
Troy Bombardia of SentimenTrader highlights several short-term risks facing stocks.
Nasdaq 2% Pullbacks From Record Highs – Bespoke
Bespoke takes a look at the handful of times that the Nasdaq has fallen 2% the day after hitting an all-time high, like it did yesterday.
Christmas in July: NASDAQ’s Mid-Year Rally – Almanac Trader
Seasonality expert, Jeff Hirsch points out that the we’re approaching a seasonally bullish 12-day stretch for the Nasdaq.
Bank Stocks on Breakdown Watch – All Star Charts
JC Parets explains why he’s closely watching the Financial sector right now.
The Pyramid of Equity Returns: Almost 200 Years of U.S. Stock Performance – Visual Capitalist
Here’s a fascinating infographic U.S. stock market returns over the past 200 years.
Top 10 Tweets
Biggest last hour gain for the S&P 500 since April 17th.
— Bespoke (@bespokeinvest) June 25, 2020
US stocks erase losses, #NASDAQ ends 1.09% higher, back above 10,000. pic.twitter.com/n7FZiHYXDC
— jeroen blokland (@jsblokland) June 25, 2020
Bulls are winning the fight for the 200 day moving average. $SPX $SPY pic.twitter.com/1MQ1dEAKFH
— Greg Rieben (@gregrieben) June 25, 2020
$NDX longest streak above 20 DMA since Oct. ‘06 pic.twitter.com/rl3WaBrO0n
— Jonathan Krinsky,CMT (@jkrinskypga) June 25, 2020
Wednesday also marked 65 trading days (3 calendar months) off the March 23rd low. The S&P’s 36.3% gain over that stretch ranks 3rd best since 1950, only fractionally trailing the first few months off the 2009 low (38.8%) and the 1982 low (38.7%). Pretty good company. pic.twitter.com/z5IYvVXlyV
— Strategas (@StrategasRP) June 25, 2020
$RTY Russell 2000 Futures 1D
Handful of trend line touches and a clean price level to trade against ~1,350.$RUT $IWM pic.twitter.com/lr198noKui
— Shane C. Murphy (@murphycharts) June 25, 2020
When the % of Russell 3000 stocks overbought spikes above 25% it tends to be an excellent long-term buying opportunity…
Quite the breadth thrust from this indicator earlier in the month as it actually breached 30% and registered its highest reading in over a decade… $IWV pic.twitter.com/kHMWA7fMHF
— Steven Strazza (@sstrazza) June 25, 2020
Regional Banks Relative to S&P 500$KRE $XLF $SPX $IWM pic.twitter.com/Xjomw3oidd
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) June 25, 2020
$gold: key points
1. Gold is in a strong uptrend.
2. The two-month consolidation period is probably over.
3. Gold often struggles @ new highs (blue area).
4. Strong seasonal period starts in August.
5. Chart setup favors higher prices: 1900-2000 USD = upper channel?$gld pic.twitter.com/efkGUrzrhw— Adrian (@highlevelTrader) June 25, 2020
Everyone is waiting for #Gold to breakout, but AUM in gold ETFs has already broken out to new highs…$GC_F $GLD $IAU pic.twitter.com/gpiNe912Qg
— Topdown Charts (@topdowncharts) June 25, 2020