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Today’s Summary
Thursday, August 5th, 2021
Indices: US Stocks closed higher in today’s session, with the Dow advancing 272 points or 0.78%. The Nasdaq also rose 0.78%, while the S&P 500 rose 0.60%. The Russell 2000 outperformed, gaining 1.81%.
Sectors: 9 of the 11 sectors closed higher. Financials led, gaining 1.31%. Health Care lagged, falling 0.41%.
Commodities: Crude Oil futures rose 1.38% to $69.09 per barrel. Gold futures slipped 0.31% to $1,809 per ounce.
Currencies: The US Dollar Index was flat (0.03%).
Interest Rates: The 10-year US Treasury yield rose to 1.225%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#ES_F 1h
Break out time? pic.twitter.com/7SCyeLLQaN
— Yuriy Matso (@yuriymatso) August 5, 2021
Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). It’s a chart of S&P 500 futures over the past two weeks. Yuriy points out that, S&P 500 futures have been stuck in a tight range between 4365 and 4420 for over a week now. We’ve tested and failed at the upper bounds of the range (4420) four times now. Will the fifth time be the charm? It certainly looks like it will be given the strong action into today’s close. But price will need to follow through above 4420 in the very near term in order to confirm a breakout from this eight-day trading range.
Quote of the Day
“I’ll give you the bottom 10% and the top 10% of any move if I get to keep the middle 80%.”
– Bernard Baruch
Top Links
August Jobs Day Bearish Last 20 Years – Almanac Trader
Jeff Hirsch points out that the August unemployment report day (tomorrow) has a bearish track record.
Still Looking for Breadth to Improve – Potomac Fund Management
Dan Russo gives his weekly check on market breadth.
Stocks or Bonds – All Star Charts
The team at All Star Charts takes a look at Stocks vs. Bonds ($SPY/$TLT).
Biggest Jump in Bearish Sentiment Since Last Spring – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Talking About Humans w/ David Keller – Technical Analysis Radio
In this video, David Keller and JC Parets discuss the cognitive and emotional biases that influence market participants.
Top Tweets
— Arun S. Chopra CFA CMT? (@FusionptCapital) August 5, 2021
Not a major deterioration, but since April, % of S&P 500 stocks > 200d moving average has steadily declined, but remains fairly strong at 84% pic.twitter.com/BTZZ1apOI8
— Liz Ann Sonders (@LizAnnSonders) August 5, 2021
No S&P 500 Energy sector stocks have closed above their 50-DMAs for 15 trading days in a row. The record is 20 days ending on 7/25/2001. $XLE pic.twitter.com/uFtfSNZcP1
— Bespoke (@bespokeinvest) August 5, 2021
$ARKK strong move up today. pic.twitter.com/DfZQ8sM6tv
— Petr "quasi-quant" Pinkhasov (@pivotanalytics) August 5, 2021
$SQ $MELI $DDOG $ADSK Weekly: Fresh breakouts! pic.twitter.com/wU4t0Sudon
— Brian G (@alphacharts) August 5, 2021
Japan. pic.twitter.com/DWmqKGfvzu
— Tom Bruni, CMT (@BruniCharting) August 5, 2021
Current view of $DXY is taking the shape of a possible symmetrical triangle. My bias is that the consolidation resolves lower in the direction of the primary trend.
But that can change quickly with a close above 93.30.
Keeping an eye on momentum pic.twitter.com/zambcI1vMO
— Ian Culley (@IanCulley) August 5, 2021
~6 months ago, investors flocked to banks as a way to benefit from the assured spike in yields driven by inflation. -50bps lower now, those same investors appear to be liquidating $XLF positions. That's often a point to start sniffing around. pic.twitter.com/sTLs1Lq3tt
— RenMac: Renaissance Macro Research (@RenMacLLC) August 5, 2021
How confused are you?
In the past 24 hours we saw Citigroup downgrade equities due to rates.
This morning we saw Goldman increase their S&P 500 forecast due to ……. rates. pic.twitter.com/nvrng5ZVyh
— Ryan Detrick, CMT (@RyanDetrick) August 5, 2021
someone at Goldman Sachs can extrapolate a trend lolhttps://t.co/FT1CkczS0Q pic.twitter.com/RHgDfJWe28
— BostonCharts (@bostonchaahhts) August 5, 2021
You’re all caught up now. Thanks for reading!