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Today’s Summary
Wednesday, July 22nd, 2020
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 165 points or 0.62%. The S&P 500 and Nasdaq rose 0.57% and 0.24%, respectively. Small-Caps underperformed but still inched higher by 0.18%.
Sectors: Utilities led, rising 1.54%. Energy was the only sector to close lower, falling 1.23%.
Commodities: Crude Oil futures were more or less flat, changing just 0.05% to $41.90 per barrel. Gold futures climbed 1.15% to an eight-year high of $1,865 per ounce.
Currencies: The US Dollar Index fell 0.21%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.606%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Even a log scale on a monthly chart does not do this Growth versus Value relationship justice…am expecting to continue to see asset reallocation out of growth over the next few weeks. pic.twitter.com/e0O59SvqI2
— Linda Raschke (@LindaRaschke) July 22, 2020
Today’s Chart of the Day was shared on Twitter by Linda Raschke (@LindaRaschke). It’s a monthly chart of Growth vs. Value ($IUSG/$IUSV) over the past 20 years. As you probably already know by now, Growth has absolutely trounced Value over the past two decades. However, in the last week or so Value has been outperforming Growth. In a tweet yesterday, Linda pointed out that this ratio has already put in a lower high on the daily chart, and could soon put in a lower low. The fact that you can’t even see short-term weakness on this long-term monthly chart speaks to how extended this relationship has become over the past few years. The question remains, is this the start of the great rotation out of Growth and into Value that everyone’s been anticipating, or is this just another pullback within a monster uptrend?
Quote of the Day
“Great investors spend less time thinking about why a market is behaving a certain way than what to do about it. “What” is verifiable. “Why” is subject to all sorts of biases.”
– Willie Delwiche
Top Links
Stock-Market Timing Guru Tom DeMark Says S&P 500 Will See 3,500 Before Peaking – Market Watch
Respected analyst and market timer, Tom DeMark, says the S&P 500 could rally another 8% to 3,500 before seeing any meaningful weakness.
Small-Cap Stocks Escape Late Day Fade – Here’s a Name on the Move! – StockCharts.com
Mary Ellen McGonagle explains why she likes small-caps right now, and shares one particular small-cap stock that’s currently breaking out – Yeti Holdings, $YETI.
It’s About Tai-me – Dana Lyons
Dana Lyons discusses the breakout in Taiwan stocks.
Gold-Silver Ratio Key as Markets Sure Higher – Kitco News
In this clip, Carley Garner offers her technical perspective on the Silver/Gold ratio, Equities, and Treasury Bonds.
Silver Gets the Gold for YTD Performance – Bespoke
Bespoke points out that Silver is now outperforming the Nasdaq, Gold, and Treasuries.
Top Tweets
Thanks to a late day rally, the Nasdaq avoided back-to-back losses yet again.
An incredible 48 trading days since last time it was red 2 days in a row, way back in May.
Ties the longest streak in history from 1978.
Given it'll make 49 days tomorrow, this is a new record. Wow. pic.twitter.com/WNizqVZWdj
— Ryan Detrick, CMT (@RyanDetrick) July 22, 2020
Sleepy summer day turns into late day buying… feels like a good time to show this chart $SPX pic.twitter.com/VGGmkOqgWl
— Abigail Doolittle (@TheChartress) July 22, 2020
Value Line Geometric$VLG $SPX pic.twitter.com/hYn5nthm9R
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) July 22, 2020
Golden Cross on the stock to bond ratio on bullish momentum $VTI $BND #TradingView #stocks #bonds pic.twitter.com/ArEiTcpcke
— Drew Wells, CMT, CIMA® (@DrewTheCharts) July 22, 2020
Hedge funds & large speculators have trimmed exposure to tech stocks after being most bullishly positioned since 2017; some have started to shift to laggards, such as banks @CFTC @Bloomberg @Nasdaq @CMEGroup pic.twitter.com/vGUmEAB7mP
— Liz Ann Sonders (@LizAnnSonders) July 22, 2020
By historical measures, Silver is not extremely stretched yet. pic.twitter.com/WKl8ANjDnJ
— Strategas (@StrategasRP) July 22, 2020
Wowza. The 4th largest 2-day gain for Silver in the history of the data (going back to 1975 in Bloomberg). Below is a table of the top fifteen 2-day moves in Silver. $SLV pic.twitter.com/Bc3qAEgnYG
— Carter Braxton Worth (@CarterBWorth) July 22, 2020
Keeping it clean and simple… $SLV / $GLD ratio testing upper band of its LT downwards channel pic.twitter.com/eyJyZvyjak
— Grant Hawkridge (@granthawkridge) July 22, 2020
Copper notably red today – it just ran into downtrend resistance from 2011 $HG_F $JJC $FCX pic.twitter.com/7aoLGfZTrJ
— ATMcharts (@ATMcharts) July 15, 2020
If anyone asks you what behavioral finance is, show them this chart.$SOX $SPX $MSFT pic.twitter.com/bLDP9zmd6l
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 21, 2020