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Today’s Summary
Tuesday, July 6th, 2021
Indices: The major indices closed lower to start the week, with the exception of the Nasdaq. The Dow fell 209 points or 0.60%. The S&P 500 snapped a seven-day winning streak, slipping 0.20%. The Nasdaq inched up 0.17% to a fresh record high. The Russell 2000 notably underperformed, dropping 1.36%.
Sectors: 4 of the 11 sectors closed higher. Real Estate led, rising 0.89%. Energy lagged by a wide margin, dropping 3.24%.
Commodities: Crude Oil futures fell 2.38% to $73.37 per barrel. Gold futures moved higher by 0.61% to $1,794 per ounce.
Currencies: The US Dollar Index rose 0.34%.
Interest Rates: The 10-year US Treasury yield tumbled to 1.350%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Everyone talking about about the space race between Jeff Bezos and Richard Branson, but the joke is on them.
The real race has been won by Amazon stock, which just broke out to new all-time highs on the back of a potential "breakaway gap."
$4,220 ahead? pic.twitter.com/neCeZl1b0N
— Tom Bruni, CMT (@BruniCharting) July 6, 2021
Today’s Chart of the Day was shared by Tom Bruni (@BruniCharting). It’s a daily candlestick chart of Amazon ($AMZN) over the past year. A couple of weeks ago, we explained that $AMZN was testing a crucial resistance level around $3,500. As Tom points out, $AMZN blasted through resistance in today’s session and closed at an all-time high for the first time since last September. The stock has been stuck in a well-defined range for the past 10-months. Using the height of that range ($670), Tom projects a measured move price target of $4,220, which is about 15% higher from here. Keep in mind, this is the largest stock in the Consumer Discretionary sector, and the 3rd largest stock in both the S&P 500 and the Nasdaq 100. After nearly a year of sideways price action, one of the largest stocks in the market looks poised for another leg higher.
Quote of the Day
“The way to build long-term returns is through preservation of capital and home runs.”
– Stanley Druckenmiller
Top Links
Amazon (AMZN) Primed and Popped – Bespoke
Bespoke takes a look at the breakout in Amazon ($AMZN).
Leaving Me Breadth-Less – The Weekly Trend Podcast
In this podcast, David Zarling and Ian McMillan discuss the most important technical developments across the markets.
The Seasonal Window for Silver is Opening Right Now – SentimenTrader
Jason Goepfert points out that we’re entering into a historically bullish time of year for Silver prices.
Elevated Risk for Stocks – StockCharts.com
Julius de Kempenaer shows that several major stock market indices are losing momentum.
Does the Accumulation Begin? – All Star Charts
Louis Sykes gives an update on the crypto markets.
Top Tweets
The Nasdaq Composite closed at a 52-week high today, something it's done 1,080 times since 1984.
On those days, an average of 50% of stocks on the Nasdaq advanced on the day.
Today, 31% of stocks on the exchange advanced. That's the lowest out of all those 1,080 days.
— SentimenTrader (@sentimentrader) July 6, 2021
$NQ, 5m
Why not!?
Nasdaq stages another intraday V-shaped recovery trapping bears. pic.twitter.com/Uc9JX3YJoA
— Yuriy Matso (@yuriymatso) July 6, 2021
Everyone knows the phrase "Sell In May & Go Away", but if you've followed me long enough you remember my attempts to popularize the phrase "A new ATH in July Is A Time To Buy"…for $COMPQ at least.
Still undefeated one year later. pic.twitter.com/ut9cpfRK82
— Steve Deppe, CMT (@SJD10304) July 6, 2021
The S&P 500 Index is up 5 consecutive months.
One year later? Higher 25 out of 26 times. pic.twitter.com/snj0EDGnZN
— Ryan Detrick, CMT (@RyanDetrick) July 6, 2021
Less than 2.2% of stocks are down 20+%, the lowest level since 2010.
While major declines have occurred when this figure is rising, sentiment-driven corrections have followed extremely low levels like today.$SPX $SPY pic.twitter.com/WGCVcDXHrc
— Andrew Thrasher, CMT (@AndrewThrasher) July 6, 2021
The S&P 500 Index surpasses the Russell 2000 Index in year to date performance. What does 2H have in store for smallcaps?$IWM $SPY $QQQ $DIA pic.twitter.com/475ehhTtbY
— Michael Roberts Associates Inc. (@MRA_Planners) July 6, 2021
Don't underestimate the index drag effect that comes with these 12-mo base breakouts in $AAPL & $AMZN pic.twitter.com/JSrFLHZN2D
— Steven Strazza (@sstrazza) July 6, 2021
Best stocks to own in July over the last 10 years. $AAPL and $GOOGL have delivered the top returns. Second thing you'll notice is the amount of Growth stocks on the list. #TRADINGTIPS #investors #SPX500 h/t @schaeffers pic.twitter.com/YQrYD0X3p3
— Seth Golden (@SethCL) July 6, 2021
$IWF vs $IWD Large Cap Growth vs Value pic.twitter.com/CChDLA6KZb
— Christian Fromhertz (@cfromhertz) July 6, 2021
Commodities suffered a huge reversal today.
Read more in tonight's Closer: https://t.co/A7Ee83LwUq pic.twitter.com/EN0B1iIqOr— Bespoke (@bespokeinvest) July 6, 2021
US 10-yr Yields back below 1.4% ? pic.twitter.com/jsc2VFrr7H
— J.C. Parets (@allstarcharts) July 6, 2021
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 6, 2021
You’re all caught up now. Thanks for reading!