Sponsored By:
Today’s Summary
Wednesday, July 7th, 2021
Indices: US Stocks were mixed in today’s session, but mostly higher. The Dow rose 104 points or 0.30%. The S&P 500 gained 0.34%, while the Nasdaq was flat (0.01%). The Russell 2000 underperformed again, falling 0.95%.
Sectors: 8 of the 11 sectors closed higher. Materials led, rising 1.04%. Energy lagged for the third straight day, dropping 1.63%.
Commodities: Crude Oil futures moved lower by 1.69% to $72.13 per barrel. Gold futures rose 0.54% to $1,802 per ounce.
Currencies: The US Dollar Index gained 0.18%.
Interest Rates: The 10-year US Treasury yield continued lower to 1.320%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$XLE broke below its 50MA and $XLE : $SPY broke below its November uptrend pic.twitter.com/rU6UWF3AuZ
— Bailey.Baxter2020 (@BBaxter2020) July 7, 2021
Today’s Chart of the Day was shared by Bailey Baxter (@BBaxter2020). It’s a chart of the Energy sector over the past year, on both an absolute (top) and relative (bottom) basis. The Energy sector has been the worst-performing sector for three straight days now, which is notable given how strong it has been this year. The sector is up more than 40% YTD and it has persistently been the best performing sector all year. Bailey points out that $XLE is now below its 50-day moving average, and it has broken its November uptrend relative to the S&P 500. In other words, the Energy sector is breaking down on both an absolute and relative basis. Will the Energy sector resign its leadership in the second half of the year?
Quote of the Day
“The height of the pinnacle is determined by the breadth of the base.”
– Ralph Waldo Emerson
Top Links
Stocks Are Going Streaking – LPL Financial Research
The team at LPL Financial Research shares some interesting stats around daily, monthly, and quarterly winning streaks for the S&P 500.
Advance – Decline Lines are Not Advancing – All Star Charts
JC Parets points out that A/D lines are diverging from the major indices.
Sentiment Becomes More Fearful With Stocks at Record Levels – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Russell 2,000 (IWM) No Longer in Favor – Bespoke
Bespoke examines the recent weakness in Small-Cap stocks.
Why The Pounding of Value Stocks May Be Nearing an End – SentimenTrader
Jason Goepfert weighs in on the tug-of-war between Growth and Value stocks.
Top Tweets
The S&P 500 hasn't had a 5% drawdown, on a closing basis, since October.
— Eddy Elfenbein (@EddyElfenbein) July 7, 2021
2021 intra-year decline is, so far, one of the smallest on record. Median since 1980 is 11% with 93% of calendar years experiencing a greater-than-5% drawdown. pic.twitter.com/w1aOlcGx0T
— Mark Ungewitter (@mark_ungewitter) July 7, 2021
3 sessions in a row with the @NASDAQ closing up despite more than 50% of the index declining pic.twitter.com/jK6utdgGxD
— Grayson Roze (@GraysonRoze) July 7, 2021
$NDX now beating $IWM YTD pic.twitter.com/GtAkU4ZSHi
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 7, 2021
Mega-caps ($OEF) this week are overtaking small-caps ($IWM) in terms of YTD performance. pic.twitter.com/0dnw26DLnF
— Willie Delwiche (@WillieDelwiche) July 7, 2021
Powerful primary trends… $XLK ? $XLF ? pic.twitter.com/dcd6YcKnlX
— Steven Strazza (@sstrazza) July 7, 2021
US 10-Year Treasury Yield back below the key level of 1.40%. How will risk assets do in an environment where bonds are on the rise?$TNX pic.twitter.com/y7qd8FzPSe
— R. Alfonso Depablos (@AlfCharts) July 7, 2021
10yr being rejected @ 200wkEMA was the first tell, currently sitting @ 40wkEMA. Everyone's watching the levels (which are important!) but I've been focusing on these two avgs. #bonds #yields pic.twitter.com/YXGG3ClOLP
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 7, 2021
Important distinction here… doesn't make the flush in yields any less painful for the consensus, but we're doubtful it's the "end of cycle" message from 2019 given the difference in trend (downward sloping 200-day then vs. upward sloping 200-day today). $TLT @StrategasRP pic.twitter.com/Bs2uMzu0sd
— Chris Verrone (@verrone_chris) July 7, 2021
$IAU iShare gold trust – golden cross FWIW pic.twitter.com/2Uffx73vRb
— Frances Horodelski (@fhoro) July 7, 2021
$ETH clears its 50-day MA! Cloud-based resistance next stop?#ethereum #fairleadstrategies pic.twitter.com/QcEVlGW85j
— Katie Stockton, CMT (@StocktonKatie) July 7, 2021
Am I doing this right? pic.twitter.com/9tC6oNoOMs
— Urban Carmel (@ukarlewitz) July 7, 2021
You’re all caught up now. Thanks for reading!