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Today’s Summary
Monday, August 2nd, 2021
Indices: US Stocks closed lower to start the week/month. The Dow slipped 97 points or 0.28%. The S&P 500 inched lower by just 0.18%, while the Nasdaq managed to close slightly positively (0.06%). The Russell 2000 underperformed, falling 0.48%.
Sectors: 4 of the 11 sectors closed higher. Utilities led, gaining 0.77%. Materials lagged, falling 1.21%.
Commodities: Crude Oil futures dropped 3.33% to $71.49 per barrel. Gold futures were unchanged and continue to trade around $1,817 per ounce.
Currencies: The US Dollar Index was unchanged.
Interest Rates: The 10-year US Treasury yield dropped to 1.177%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#Semiconductuors $SMH $SOXX #StocksToWatch #Interesting @NapatreeC pic.twitter.com/I8zJlwjiyg
— Mike Moses, CMT,CMSA (@DominickMike) August 2, 2021
Today’s Chart of the Day was shared by Mike Moses (@DominickMike). It’s a daily candlestick chart of the Semiconductor ETF, $SMH, over the past 1.5 years. The top-weighted stocks in this ETF include, $TSM, $NVDA, $ASML, $AMD and $QCOM. Semiconductors gapped higher to start the week and closed at another record high today. Semiconductors are the chips that are found in virtually every electronic device. Due to their numerous uses, Semiconductor stocks serve as a leading indicator for both the Technology sector and the broader market. This bellwether industry group is clearly resolving higher into uncharted territory after a six-month consolidation. While there continue to be some bearish developments out there, this certainly isn’t one of them. Remember; you can’t have a party without the chips!
Quote of the Day
“It’s not what happens to you, but how you react to it that matters.”
– Epictetus
Top Links
Did You Know Stocks Historically Peak in Early August? – LPL Financial Research
The team at LPL Financial Research takes a look at seasonality as we enter August.
Swimming in Markets – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss the most important technical developments.
2 Charts for August – All Star Charts
JC Parets shares two charts to keep an eye on this month.
Market of Stocks – Momentum Monday
Howard Lindzon and Ivanhoff highlight the strongest stocks, trends, and themes across the markets.
Bitcoin and Chinese Equities Go Their Separate Ways – StockCharts
Martin Pring analyzes several cryptocurrencies and examines the recent carnage in Chinese stocks.
Top Tweets
Well that's a discouraging final hour. $SPX
— Andrew Thrasher, CMT (@AndrewThrasher) August 2, 2021
The S&P 500 closed lower for the fourth time in the last five days.
— Eddy Elfenbein (@EddyElfenbein) August 2, 2021
Hark; is that an outside day I spy? pic.twitter.com/g89qtWsfQD
— Walter Deemer (@WalterDeemer) August 2, 2021
Well would you look at that!
August and September are some of the worst months of the year for the stock market. pic.twitter.com/XWWm2AA7GB
— Callie Cox (@callieabost) August 2, 2021
The NDR SPX Cycle Composite for 2021 peaks today.
Note that this is NOT a predictive model. It's a composite of 3 historical cycles: 1 yr, 4 yr (post-election) and 10 yr (yrs ending in 1). Think of it has history's view of what 2021 could look like. @NDR_Research pic.twitter.com/jedUejtukt
— Ed Clissold (@edclissold) August 2, 2021
The % of S&P 500 stocks above their 50-DMAs has ticked back above 50% but is still relatively low based on the index's price level. Plenty of room to improve. https://t.co/H4p1RcpfIn pic.twitter.com/1WYSLD2gom
— Bespoke (@bespokeinvest) August 2, 2021
Setting up for new highs here on the equal-weight Offense vs. Defense ratio after months of chopping around within this range
^ oh and yes new highs here would be bullish ? $RCD $RHS pic.twitter.com/Mybbi9sPkF
— Grayson Roze (@GraysonRoze) August 2, 2021
Semiconductors are breaking out above wicks and closing prices. Not the prettiest of candles, but a breakout nonetheless. $SMH $SOX pic.twitter.com/bdCQK6BoaI
— Matthew Timpane, CMT (@mtimpane) August 2, 2021
Semiconductors vs S&P 500$SMH vs $SPX breaking a downwards rate of trend. RSI never got oversold either. pic.twitter.com/JBGSjJMP7N
— Pratyush Tulsian (@PrattyCharts) August 2, 2021
CRB Index > 200 and it's tough to hate on Commodities.$CRB $GCC $DBC pic.twitter.com/vtuYQEJUoW
— Shane C. Murphy (@murphycharts) August 1, 2021
Divergence growing here, hitting extremes now on the 1 year frames (60 day correlations).$TNX $DBC pic.twitter.com/ir1RTFdCT6
— Arun S. Chopra CFA CMT? (@FusionptCapital) August 2, 2021
Is price action in silver ready to rhyme? $SLV, $SIL, $SI_F pic.twitter.com/GCUeHwwk5n
— Ian Culley (@IanCulley) August 2, 2021
#Ethereum is up a whopping 56% in just over 10 days. pic.twitter.com/5NWDTPEvGg
— jeroen blokland (@jsblokland) August 1, 2021
#SPX500 is up 17.02% YTD at the end of July.
Since WWII, this has happened only 12 other times and the rest of the year was higher 11 times.
The only time it didn't work was '87, but it was up 32% YTD ending July.
Market was still up in both Aug & Sept. in 1987, but then…
— Seth Golden (@SethCL) August 2, 2021
You’re all caught up now. Thanks for reading!