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Today’s Summary
Friday, July 9th, 2021
Indices: US Stocks ended the week on a positive note with the Dow, S&P, and Nasdaq all closing at record highs. The Dow advanced 448 points or 1.30%. The S&P 500 and Nasdaq rose 1.13% and 0.98%, respectively. The Russell 2000 outperformed, gaining 2.17%.
Sectors: All 11 sectors closed higher. Financials led, rising 2.89%. Utilities lagged but still inched higher by 0.12%.
Commodities: Crude Oil futures moved higher by 2.22% to $74.56 per barrel. Gold futures rose 0.47% to $1,809 per ounce.
Currencies: The US Dollar Index slipped 0.27%.
Interest Rates: The 10-year US Treasury yield bounced higher to 1.363%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Someone better call CPS. We have a lot of Abandoned Babies out here on the charts. pic.twitter.com/K9Eg4FHR6m
— Ian McMillan, CMT (@the_chart_life) July 9, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). Over the past three sessions, the S&P 500 has formed a bullish candlestick pattern known as the “Abandoned Baby“ pattern. As silly as it sounds, there is actually a lot of market psychology behind it. This is a three candlestick pattern in which the second candle gaps down and forms a Doji, followed by a gap higher and a strong green candle. The pattern signals that buyers have regained control after a moment of indecision (yesterday). It’s important to note that this is more of a short-term signal, and it doesn’t tell us where prices are headed over the long run. But, it certainly bodes well for next week! As Ian points out, someone should probably call Child Protective Services, because it looks like someone abandoned their baby yesterday on the daily candlestick chart of the S&P 500.
Quote of the Day
“It’s a bull market, you know.”
– Mr. Partridge
Top Links
Markets Resilient As We Enter the Second Half of 2021 – LPL Financial Research
The team at LPL Financial Research breaks down this week’s performance across the markets.
U.S. Dollar at the Price/Seasonality Crossroads – SentimenTrader
Jay Kaeppel points out that the US Dollar is entering into a bearish seasonal window.
Stock Market Video Analysis for Week Ending 7/9/21 – AlphaTrends
Brian Shannon analyzes this week’s price action in Stocks and Crypto.
Fill the Gap Podcast, with Special Guest Andreas Clenow – CMT Association
In this podcast, respected trader, Andreas Clenow discusses his systematic approach to portfolio management.
The Largest S&P 500 Stocks Reporting Over Next Two Weeks – Bespoke
With earnings season around the corner, Bespoke takes a look at the largest stocks in the S&P 500 reporting earnings over the next couple of weeks.
Top Tweets
*S&P 500, DOW, NASDAQ COMPOSITE & 100 CLOSE AT RECORD HIGHS
— Christian Fromhertz (@cfromhertz) July 9, 2021
Since May last year, $SPX has tested 50-day 8 times — all successfully. With investor sentiment elevated, but not frothy, another test likely is around the corner. $SPY pic.twitter.com/IMB6pOjLJu
— hedgopia (@hedgopia) July 9, 2021
After advancing 7 weeks in a row, the odds that the NASDAQ 100 would advance yet another week are/were: 82%
And the $NDX and $QQQ did advance this week, in line with presumptions and in line with history.
So, what happens after an 8-week streak, as is now the case? https://t.co/sKn3tb4R9j pic.twitter.com/ExyrEryytZ— Carter Braxton Worth (@CarterBWorth) July 9, 2021
The typically high 20-day correlation between Nasdaq & Russell #futures is at its weakest since late 2018 and continues to worsen. $NQ_F & $RTY_F pic.twitter.com/vu4Pq5KnN0
— Rick Ducat, CMT (@RickDucat_TDAN) July 9, 2021
Small-caps $IWM is tight like a tiger pic.twitter.com/BiXkGxkaWI
— Grant Hawkridge (@granthawkridge) July 9, 2021
will be curious to see how small-caps resolve pic.twitter.com/b9yGvNpodN
— J.C. Parets (@allstarcharts) July 9, 2021
EM/SPX has tracked the U.S. dollar. But which is the dependent variable? Perhaps neither, as correlation is not causation. The relationship between currencies and stock markets is probably reflexive in nature, amplifying trends in both directions. ? pic.twitter.com/WKRtKj8TU5
— Mark Ungewitter (@mark_ungewitter) July 9, 2021
Inflection in the dollar too…$UUP $TLT $DXY pic.twitter.com/vsyLHAJNyv
— J4 (@J4_doji) July 9, 2021
rare earth metals moving out to 3-year highs this week…
how rare are they? pic.twitter.com/qkHdbztx9N
— David Cox, CMT, CFA (@DavidCoxWG) July 9, 2021
#Bitcoin putting up a hell of a fight but the trend remains decidedly downward for now. Stuck in a range of $32-$36k with the critical support level obviously at $30k. A break above $40k would be a buy IMO. $BTC #crypto pic.twitter.com/hYYOk4I4vB
— The Third Coast (@ThirdCoastTA) July 9, 2021
Gas prices in the US rise to $3.22 per gallon, highest since 2014.
Charting via @ycharts pic.twitter.com/jr4yC3O8MV
— Charlie Bilello (@charliebilello) July 9, 2021
You’re all caught up now. Thanks for reading!