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Today’s Summary
Monday, July 12th, 2021
Indices: US Stocks kicked off the week on a positive note, with the Dow advancing 126 points or 0.36%. The S&P 500 and Nasdaq rose 0.35% and 0.21%, respectively. The Russell 2000 underperformed, inching up just 0.08%.
Sectors: 9 of the 11 sectors closed higher. Financials led, rising 0.98%. Consumer Staples lagged, inching lower by 0.16%.
Commodities: Crude Oil futures fell 0.62% to $74.10 per barrel. Gold futures slipped 0.26% to $1,806 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The 10-year US Treasury yield ticked higher to 1.366%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The S&P 500 is now up 100% from its March 2020 lows. pic.twitter.com/3CGWpmqwNw
— Michael Batnick (@michaelbatnick) July 12, 2021
Today’s Chart of the Day was shared by Michael Batnick (@michaelbatnick). Today marked a noteworthy milestone for the bulls. As Michael points out, the S&P 500 has officially doubled from the pandemic low on March 23rd, 2020. At that point, the S&P 500 had dropped more than 33% in just 23 trading days, marking one of the sharpest sell-offs in the history of the index. It has taken about 68 weeks for the S&P 500 to double this time around. For comparison’s sake, it took more than 110 weeks for the S&P 500 to double from the 2009 low, and more than 245 weeks for it to double from the 2002 low. To be clear, this is really just a notable milestone, rather than anything predictive. But, for what it’s worth, the S&P 500 stalled out in both 2007 and 2011 shortly after gaining 100% from their respective lows. For a trip down memory lane, check out the Daily Chart Report from the low, 100% ago.
Quote of the Day
“Follow the trend, but do not fall in love with the trend.”
– Jay Kaeppel
Top Links
Sleepy Small Caps – Bespoke
Bespoke points out that the Russell 2000 has begun to stall.
Technical Analysis of Semiconductors – All Star Charts
JC Parets checks in on the Semiconductor stocks.
Treading Lightly – AlphaCharts
Brian at AlphaCharts highlights some noteworthy trends across the markets.
Focus on the US Dollar – StockCharts
Greg Schnell points out that the US Dollar is at a key inflection point.
Market Variants – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss several technical developments that are worth keeping an eye on this week.
Top Tweets
Last time there were more record closing highs in a 12 day period was in 1964.
— Bespoke (@bespokeinvest) July 12, 2021
$SPX up 3 wks in a row doesn’t often lead right into >5% pullback (red lines) pic.twitter.com/4dR5rVFtT0
— Urban Carmel (@ukarlewitz) July 11, 2021
Hedge funds’ positioning in S&P 500 futures has eased considerably pic.twitter.com/qqZHaNSOFk
— Liz Ann Sonders (@LizAnnSonders) July 12, 2021
Past 5 weeks on the @NYSE
Them there's some battle candles for those buyers n' sellers, folks… ? pic.twitter.com/SizfNi04TU
— Grayson Roze (@GraysonRoze) July 12, 2021
The Russell 2000 continues to see demand on any slip dip… https://t.co/mFr1kiBecH pic.twitter.com/DYQ2jKaIlG
— Ian McMillan, CMT (@the_chart_life) July 12, 2021
An important week for big banks (by association an important week for the overall market)
8 of the 10 largest Financials in $SPX report EPS.
Our hunch is big banks / big financials are better sells than buys at present, just as they were exactly three months ago. pic.twitter.com/SKgQf2fdpv
— Carter Braxton Worth (@CarterBWorth) July 12, 2021
Semiconductors either a) break out of this six-month base confirming renewed strength for a key bellwether group, or b) fail at resistance and looking back we'll all recognize the clear sign of bull market exhaustion. Either way, it's a chart to watch!$SMH $SOXX $XSD pic.twitter.com/M9FDLxkKKn
— David Keller, CMT (@DKellerCMT) July 12, 2021
$LIT Lithium ETF
very strong…$ALB $LTHM $TSLA pic.twitter.com/iR8pD5QPhA
— Christian Fromhertz (@cfromhertz) July 12, 2021
The rare earth metals ETF – $REMX, continues to make new highs. Keep an eye on $MP – a stock in the same space also setting up. pic.twitter.com/piaW9yxsmu
— ivanhoff (@ivanhoff2) July 12, 2021
Bitcoin back <33,000 pic.twitter.com/1uYkVSHPN3
— Tom Hearden (@followtheh) July 12, 2021
$SPX This market is like a sermon. When you are in the middle of it there is no way to know when it will end. So you sit back and listen and look at your watch. $NDX $IWM pic.twitter.com/jncvsydolm
— Kate's Dad (@KASDad) July 12, 2021
You’re all caught up now. Thanks for reading!