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Today’s Summary
Wednesday, August 4th, 2021
Indices: US Stocks closed lower in today’s session, with the Dow falling 324 points or 0.92%. The S&P 500 slipped 0.46%, while the Nasdaq managed to close in the green by just 0.13%. The Russell 2000 underperformed, dropping 1.23%.
Sectors: 2 of the 11 sectors closed higher. Communications led, gaining 0.28%. Energy lagged, dropping 2.71%.
Commodities: Crude Oil futures continued lower by 3.42% to $68.15 per barrel. Gold futures were unchanged and continue to trade at $1,813 per ounce.
Currencies: The US Dollar Index rose 0.23%.
Interest Rates: The 10-year US Treasury yield was little changed at 1.185%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$IBB
Back to the TOP! pic.twitter.com/BTP8sL2T15— conradseric, CMT, CAIA, CEFA (@conradseric) August 4, 2021
Today’s Chart of the Day was shared by Eric Conrads (@conradseric). It’s a daily chart of the popular Biotech ETF, $IBB, over the past year. The top-weighted stocks in this ETF include Amgen ($AMGN), Gilead ($GILD), Moderna ($MRNA), Illumina ($ILMN), and Vertex Pharmaceuticals ($VRTX). Two months ago, we highlighted several reasons that $IBB looked poised to move higher, and today, it’s testing record highs for the first time since February. As you can see, it has formed a large base over the past six months, and you know what they say about big bases….“The bigger the base, the higher in space!” $IBB closed just a hair shy of an all-time high today, but if it does enter blue-sky territory in the near term, there will be virtually no overhead supply to prevent it from moving significantly higher.
Quote of the Day
“The aim of the wise is not to secure pleasure, but to avoid pain.”
– Aristotle
Top Links
Are Investors Discounting a Slower Growth Environment? – Potomac Fund Management
Dan Russo shares some key points on the current market environment.
In Healthcare, Focus on Supplies, and Equipment, Avoid Providers – StockCharts
Julius de Kempenaer examines the strongest and weakest areas within the Health Care sector.
Pfizer (PFE) Partying Like Its 1999 – Bespoke
Bespoke takes a look at the multi-decade breakout in Pfizer, $PFE.
August Strategy Session: 3 Key Takeaways – All Star Charts
The team at All Star Charts highlights three themes to keep an eye on this month.
Is Crude Oil Forming Bearish Hanging Man Pattern Ar 2018 Highs? – Kimble Charting Solutions
Chris Kimble points out that Crude Oil is stalling at a key long-term resistance level.
Top Tweets
While Small Caps have been stagnant for a few months, let's not forget the bigger picture and what we know (historically) about strong advances, ensuing consolidations, and what typically happens afterwards…$IWM $RUT $RTY_F pic.twitter.com/hz5qWgwqF2
— Ian McMillan, CMT (@the_chart_life) August 4, 2021
$IYT Lower highs and lower-lows, definition of a down trend. Still above 200-DMA
Has been on par with the mid-cycle transition (economic) narrative. #investing pic.twitter.com/58ZrTE7Yxg
— Seth Golden (@SethCL) August 4, 2021
"nasdaq theory" pic.twitter.com/7T7COHLX1j
— BostonCharts (@bostonchaahhts) August 4, 2021
$NVDA retesting a former relative breakout and $AMD with a fresh relative breakout. Probably not bearish for Semis as a whole – $SMH pic.twitter.com/xAkegSywFu
— Pratyush Tulsian (@PrattyCharts) August 4, 2021
Health Care back above those former lows relative to the S&P 500.$XLV / $SPY pic.twitter.com/PTshDDm1fg
— Alfonso Depablos (@AlfCharts) August 4, 2021
A potential shift to Health Care leadership after a test of uptrend support from 1993 vs the S&P 500 pic.twitter.com/VHUEZLu9yi
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 4, 2021
I know $MRNA blowing up ahead of earnings, but can we talk about $PFE working on a 20+ year base… pic.twitter.com/LdhII4cwDA
— J4 (@J4_doji) August 4, 2021
China is heavily oversold relative to international stocks near a long term area of polarity. Bottom fish with care, if that's your thing, and mind the levels before they mind you $MCHI $VXUS pic.twitter.com/Cbnym5HVRk
— Drew Wells, CMT, CIMA® (@DrewTheCharts) August 4, 2021
$TSLA is making a bid to end its consolidation/corrective period and continue its uptrend with a triangle breakout and bounce off the rising 200-day SMA. Tesla is a top 15 holding in 155 ETFs, including $CARZ, $IDRV and $DRIV pic.twitter.com/QrnouNCamS
— Arthur Hill, CMT (@ArthurHill) August 4, 2021
$ETHUSD For all you Cryptocurrency chart freaks, we may encounter a bit of a pause here, encountering the VWAP from the last significant high. pic.twitter.com/xTdQ86eHUM
— Alan Cohen (@al_xdpg) August 4, 2021
Google searches for “hyperinflation” have rolled over decisively
@GoogleTrends pic.twitter.com/rk1ubFQpcV— Liz Ann Sonders (@LizAnnSonders) August 4, 2021
You’re all caught up now. Thanks for reading!