Sponsored By:
Today’s Summary
Tuesday, July 21st, 2020
Indices: US stocks ended mostly higher in today’s session. The Dow Jones Industrial Average advanced 160 points or 0.60%. The S&P 500 inched higher by 0.17%, while the Nasdaq fell 0.81%. Small-Caps outperformed, with the Russell 2000 rising 1.33%.
Sectors: Energy led significantly, jumping 6.04%. Technology lagged, falling 1.00%.
Commodities: Crude Oil futures moved higher by 1.61% to $41.58 per barrel. Gold futures had their best day in over a month, rising 1.42% to a fresh multi-year high of $1,843 per ounce.
Currencies: The US Dollar Index dropped 0.67%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.605%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#Silver 4-year high, first time in a year. pic.twitter.com/c9jMgeOvS2
— Nautilus Research (@NautilusCap) July 21, 2020
Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It’s a chart of Silver over the past 53 years. Silver has been gaining a lot of attention lately, and rightfully so. Silver Futures surged 7% today to a 4-year high of $21.68 per ounce. This is pretty remarkable considering that in March, Silver was trading at its lowest level in over a decade, around $11.75 per ounce. That’s an 83% rally in just four months…talk about momentum! Today marks the 10th time since 1967 that Silver hit a 4-year high for the first time in over a year. The table shows the prior nine instances, along with the short and long-term forward returns. On average, the short-term returns (1-week & 1-month) following this signal have historically been lackluster, while the longer-term returns (3-month, 6-month, 1-year) have been quite positive.
Quote of the Day
“The stock market is the story of cycles and of the human behavior that is responsible for the overreactions in both directions”
– Seth Klarman
Top Links
Stocks Suffer Seasonal Headwinds Starting…Now – SentimenTrader
Jason Goepfert points out that stocks are entering a challenging time of year, according to 30-years of historical data.
Recapping Monday’s Bad Breadth – Bespoke
Bespoke explains that the majority of S&P 500 stocks and sectors failed to participate in yesterday’s 0.84% rally.
Midweek Stock Market Recap and Technical Analysis – The Trade Risk
Evan Medeiros reviews this week’s price action and highlights some noteworthy technical developments to keep an eye on.
What is Happening in Gold Silver, and Copper Futures? – TD Ameritrade Network
In this clip, Carley Garner shares her thoughts on the strength in Gold, Silver, and Copper
Silver/Gold Price Ratio Reversal Sends Monster Bullish Message! – Kimble Charting Solutions
Chris Kimble takes a look at the impressive reversal in the Silver/Gold ratio and what it means for Precious Metals overall.
Top Tweets
The S&P 500 is up YTD, which is amazing.
Then you realize the Nasdaq is up 20% YTD, which is really amazing. pic.twitter.com/2sySffZQPK
— Ryan Detrick, CMT (@RyanDetrick) July 21, 2020
The percent of Nasdaq components above their 200 DMA “is still less than 50% ..
“This brings us back to one of our old sayings, … ‘market tops are almost always preceded by breadth divergences, but breadth divergences don’t always precede market tops.’” – @jkrinskypga pic.twitter.com/MxH9By14zQ
— Carl Quintanilla (@carlquintanilla) July 21, 2020
For those concerned about breadth – Smalls, Mid, and equal weight S&P have been outperforming the mkt cap weighted S&P since the March 23rd lows. Not evidence of a weak uptrend since then.. $SPY $RSP $IWM $VO $SPX pic.twitter.com/VaNHNxW9Yr
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 20, 2020
Am thinking lower high in place re long term trend of Growth versus Value…. pic.twitter.com/hUTydaQjDv
— Linda Raschke (@LindaRaschke) July 21, 2020
VIX® continues to decline slowly from March spike, closing yesterday at 24.5 (still above average on historical basis); @CBOE Crude Oil Volatility Index finished yesterday at 42.6, down from whopping 325 level hit on April 21, during peak of panic for oil @SPGlobal @SPDJIndices pic.twitter.com/sw5gbEHYIW
— Liz Ann Sonders (@LizAnnSonders) July 21, 2020
Oil thru the gap$CL_F pic.twitter.com/Y0AK1Cs42C
— David Zarling, CMT (@AdaptivCharts) July 21, 2020
Party on says the Aussie Dollar… $AUDUSD +1.5% to new 52-week highs pic.twitter.com/f2ax5Z1MJm
— Steven Strazza (@sstrazza) July 21, 2020
Silver has outperformed the tech index since the bottom in March. $SLV $QQQ
Furthermore, silver is dirt cheap and tech stocks are very expensive (but not extremely expensive as in 1999). pic.twitter.com/tesN4Ne348
— Tiho Brkan (@TihoBrkan) July 21, 2020
Gold…check
Silver…check
Palladium… pic.twitter.com/OPJgPm8u1l— Wolfe Daily Howl (@WolfeDailyHowl) July 21, 2020
Call the Hunt Bros! SLV is breaking out. pic.twitter.com/zWnkaWuKHY
— Eddy Elfenbein (@EddyElfenbein) July 21, 2020