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Today’s Summary
Friday, July 16th, 2021
Indices: US Stocks ended the week on a sour note, with the Dow falling 299 points or 0.86%. The S&P 500 and Nasdaq closed lower by 0.75% and 0.80%, respectively. The Russell 2000 underperformed, dropping 1.24%.
Sectors: 4 of the 11 sectors closed higher. Utilities led again, rising 1.01%. Energy lagged again, dropping 2.83%.
Commodities: Crude Oil futures slipped 0.67% to $71.17 per barrel. Gold futures fell 0.90% to $1,813 per ounce.
Currencies: The US Dollar Index rose 0.16%.
Interest Rates: The 10-year US Treasury yield continued lower to 1.294%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
If the Nasdaq Comp loses it 21-day EMA (green line on the chart), then a retest of the recent breakout level (14,100-14,200) would likely be the next stop. pic.twitter.com/MbC52JXDuB
— Joseph Fahmy (@jfahmy) July 16, 2021
Today’s Chart of the Day was shared on Twitter by Joe Fahmy (@jfahmy). It’s a daily chart of the Nasdaq Composite over the past 15-months. The Nasdaq fell for the fourth consecutive day in today’s session, closing below its 21-day exponential moving average (green) for the first time in nearly two months. Despite the four-day losing streak, the Nasdaq is currently only 2% off of a record high. The 21-day exponential moving average has done a good job of defining the short-term trend in recent months. So, today’s break warrants some near-term caution. However, Joe adds that potential support lies less than 2% below current prices, around 14,100 – 14,200.
Quote of the Day
“You can’t stop the waves, but you can learn to surf.”
– Jon Kabat-Zinn
Top Links
Seasonal Summer Slump – Bespoke
Bespoke examines the summer doldrums.
This Indecision’s Is Bugging Me – Potomac Fund Management
Dan Russo outlines some key takeaways from the current market environment.
Charting the Second Half Expert Panel – StockCharts.com
Several respected technicians discuss the outlook for the market in the second half of the year.
Where Do We (Investors) Stand? – Conor White
In this quick video, Conor White highlights some key technical developments across the markets.
5-Chart Friday (7/16/21) – Compound
Charlie Bilello shares five noteworthy charts.
Top Tweets
The 100 largest companies (Nasdaq 100) are up 5.8% over the last month
Meanwhile…
Russell 2000 down 5.4%
Microcaps down 6.6%— Sarah Ponczek (@SarahPonczek) July 16, 2021
Just want to check if there anyone left who does not know that breadth is dicey? At this point it is super consensus!
— Dan Russo, CMT (@DanRusso_CMT) July 16, 2021
Thinning participation is an ominous sign! With the NASDAQ Composite above its own 50-day line and well above its 200-day line, percentage readings at 31% and 49% respectfully are significant enough divergences to warrant near term caution. pic.twitter.com/Y68nxo1PkV
— Mark Minervini (@markminervini) July 16, 2021
If you took every tradeable stock in America and then subtracted the 500 stocks in the S&P 500, you would end up with a chart that looks like this.
Nothing but sideways price action and failed breakouts since February. pic.twitter.com/AlsaA7nSZF
— Danny Merkel (@ChartingTrends) July 16, 2021
$IWM going out on the low of the week. Not like last Friday's sharp climb. pic.twitter.com/hi0twoBBtL
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 16, 2021
S&P 500 is having its best month relative to Russell 2000 since March 2020; before that, best since July 2002
[Past performance is no guarantee of future results] pic.twitter.com/eojtm912Oa— Liz Ann Sonders (@LizAnnSonders) July 16, 2021
$IYT last 2 x the trannies touched their bottom BB 3x in such a short span, we saw massive rallies. will this time be different? implications are important for the stock market. #stockmarket #trading #stocks pic.twitter.com/BNFsEm3tRA
— CoiledSpringCapital (@coiledspringcap) July 16, 2021
Semis not showing the type of strength you want to see after breaking out of a 5 month consolidation $SOX $SMH pic.twitter.com/V1S5c59Kaq
— Austin Harrison, CFA, CMT (@meanstoatrend) July 16, 2021
For the last two months, AUDJPY, 10's and Small Caps have basically been the same trade pic.twitter.com/DDoBTLbLWX
— Petr Pinkhasov (@pivotanalytics) July 16, 2021
S&P 500 High Beta in red, Low Vol in blue. pic.twitter.com/xi9gmek0XL
— Eddy Elfenbein (@EddyElfenbein) July 16, 2021
Interesting chart… because Energy is traditionally the last sector to rally in a cyclical bull market. pic.twitter.com/c7K3Px1PPF
— Walter Deemer (@WalterDeemer) July 16, 2021
Before getting too upset about "death crosses" in cryptocurrencies, note they are poor timing devices, sometimes even found at major lows, as shown here for the Dow #fairleadstrategies pic.twitter.com/sbSneOLkot
— Katie Stockton, CMT (@StocktonKatie) July 16, 2021
In early May, lumber was up more than 130% YTD.
It is now down 20%. pic.twitter.com/ax570vbvYf
— Ryan Detrick, CMT (@RyanDetrick) July 16, 2021
Now that the lumber fun is over, I give you: Tin. Now trading at its highest price on record pic.twitter.com/C9SAxOU627
— Dani Burger (@daniburgz) July 16, 2021
The Juice is Loose! $OJ_F pic.twitter.com/CVCX2WyELO
— Ian Culley (@IanCulley) July 16, 2021
You’re all caught up now. Thanks for reading!