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Today’s Summary
Thursday, July 23rd, 2020
Indices: US stocks closed lower in today’s session. The Dow Jones Industrial Average fell 182 points or 0.68%. The S&P 500 and Nasdaq moved lower by 0.62% and 0.94%, respectively. Small-Caps underperformed with the Russell 2000 dropping 1.52%.
Sectors: 10 of the 11 sectors closed lower. Consumer Discretionary was the only sector to close positive, inching up 0.18%. Tech lagged for the second day in a row, falling 1.21%.
Commodities: Crude Oil futures gained 0.66% to $41.34 per barrel. Gold futures closed higher for the sixth day in a row, rising 0.54% to $1,900 per ounce – the highest weekly close ever.
Currencies: The US Dollar Index closed lower for the sixth day in a row, falling 0.46%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.592%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Revenge of the textbook ?? $TSM pic.twitter.com/YhEHatVXMi
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 24, 2020
Today’s Chart of the Day was shared on Twitter by Arun Chopra (@FusionptCapital). It’s a chart of the largest component in the Semiconductor index – Taiwan Semiconductor, $TSM. As Arun points out, this chart belongs in the textbooks, because it illustrates several classic chart patterns and technical concepts. The stock first got our attention in September of last year. At that point, price was testing resistance at $45 after forming a large base over the past year. In October, price broke out from that base and rallied 35% to a peak of $60 over the next four months. The stock then fell 25% along with the broader market earlier this year, causing price to retest former resistance around $45. Price briefly broke down, but quickly reclaimed that key $45 level. This confirmed a failed breakdown, which helped ignite a 68% rally over the past four months. In a comment to The Chart Report, Arun added; “This is really a story of relative strength. $TSM has been outperforming its peers on both a technical and fundamental basis.” Like most great stories, this one has a happy ending with the stock closing at all-time highs today.
Quote of the Day
“Don’t count the days, make the days count.”
– Muhammad Ali
Top Links
What Happened in the Markets This Week? – NYSE
Market Maker, Jay Woods gives a quick recap of this week’s price action in stocks.
This is Big Enough to Rock the World – StockCharts.com
Greg Schnell discusses the potential implications of further weakness in the US Dollar.
Under The Hood (07-24-20) – All Star Charts
Steve Strazza breaks down the charts of some of the most popular stocks among Robinhood traders.
Where Do We (Investors) Stand? – David Cox
In this quick video, Portfolio Manager, David Cox highlights the most noteworthy technical developments to be aware of.
Dow30 Notebook – Jotting on Charts
Grant Hawkridge does a deep dive into each of the 30 Dow components.
Top Tweets
the $QQQ stayed above the 20EMA for a long 76 day streak which ended today… it was fun while it lasted!! pic.twitter.com/9hEFtLBYUJ
— David Cox, CMT, CFA (@DavidCoxWG) July 24, 2020
$NDX daily closes right on the line. Next week will be big with major components reporting! pic.twitter.com/FAkjvaK8wC
— Michael Turvey (@MikeTurvey_TDA) July 24, 2020
Nasdaq 100 has lagged the S&P 500 now for 10/11 days.
That's only happened 4 other times in the last 20 years (2006, 2008, 2014, 2016) pic.twitter.com/2r9c6O9Hin
— Sarah Ponczek (@SarahPonczek) July 24, 2020
S&P 500 new 52-week high list is expanding from a low level. Encouraging development. pic.twitter.com/ygkRS5TfwN
— Willie Delwiche, CMT, CFA (@WillieDelwiche) July 24, 2020
Never seen a divergence between AAII Bearish Sentiment & CBOE equity-only, Put/Call ratio quite like this.
AAII Bearish 4-week MA is hovering around 2008/2009 levels, currently at 45.71
20-day, equity-only, Put/Call ratio is in the extreme optimism zone at 0.474$CPC $SPY pic.twitter.com/Zy7zMNxx1D
— Matthew Timpane, CMT (@mtimpane) July 23, 2020
Homebuilders leadership persists… and unloved. pic.twitter.com/6DbEythuGR
— Strategas (@StrategasRP) July 24, 2020
The US Dollar Index, #DXY, is down 8% since its high mid March, hitting its lowest level since September 2018. Interestingly, it continues to fall even as market sentiment soured in recent days. pic.twitter.com/KCf1SJwKk8
— jeroen blokland (@jsblokland) July 24, 2020
USD sentiment:
Dollar Optimism Index is at the *lowest* 1% of readings over the past 10 years. Traders have rarely been this bearish on USD
A rally in USD could be a major risk for stocks in the months ahead. pic.twitter.com/P5OBHY81X2
— SentimenTrader (@sentimentrader) July 24, 2020
Spot #Gold
$1897.50 – highest weekly close on record. pic.twitter.com/w7FI6D5tgy— Larry Tentarelli, Blue Chip Daily (@LMT978) July 24, 2020
Silver is about to post its best week since 1980. pic.twitter.com/Cs7GTjZcAi
— Dani Burger (@daniburgz) July 24, 2020
$REMX Rare Earth Minerals …Listen, I don't want to sound like a degenerate, but this is kind of an attractive setup. pic.twitter.com/Rh22y2ES3l
— Ian McMillan, CMT (@the_chart_life) July 24, 2020