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Today’s Summary
Monday, August 7, 2023
Indices: Dow +1.16% | S&P 500 +0.90% | Nasdaq +0.87% | Russell 2000 +0.08%
Sectors: 10 of the 11 sectors closed higher. Communications led, rising +1.55%. Utilities was the only sector that closed lower, but just barely (-0.02%).
Commodities: Crude Oil futures fell -1.06% to $81.94 per barrel. Gold futures fell -0.31% to $1,970 per oz.
Currencies: The US Dollar Index ticked higher by just +0.07% to $102.08.
Crypto: Bitcoin gained +0.48% to $29,181. Ethereum was flat and continues to trade at $1,827.
Interest Rates: The US 10-year Treasury yield rose to 4.095%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
$XLC Communications vs $XLK Tech
change in trend in the mega caps?
~ 48% of the $XLC ETF is $META & $GOOGL
~ 45% of the $XLK ETF is $AAPL & $MSFT pic.twitter.com/Ycl15wXJMn— Christian Fromhertz 🇺🇸 (@cfromhertz) August 7, 2023
Today’s Chart of the Day was shared by Christian Fromhertz (@cfromhertz). Many have been calling for a rotation out of Mega-Caps in the second half. However, we’re seeing a rotation among Mega-Caps instead. The Communications sector ($XLC) is the new year-to-date leader after recently pulling ahead of Tech ($XLK). The ratio between the two sectors ($XLC/$XLK) is trying to reverse higher in favor of $XLC, and it’s above the 50, 100, and 200-day moving averages. The two largest Tech stocks ($AAPL & $MSFT) have come under pressure recently, while the two largest Communications stocks ($META & $GOOGL) have picked up the slack. The Mega Caps are passing the baton between one another to prevent exhaustion, allowing the whole team (the S&P 500) to run further.
Quote of the Day
“Trends, like horses, are easier to ride in the direction they are going.”
– John Naisbitt
Trendlines > Headlines
The latest episode of Trendlines over Headlines is out!
This week, Sam Ro joins us to discuss markets, news, the economy, and more!
Sam is a prominent financial journalist and editor of the TKer, a newsletter geared toward long-term investors.
Prior to launching TKer, Sam worked at some of the largest financial media outlets, including Forbes, Business Insider, Yahoo Finance, Axios, and more!
Top Links
If Not Tech, Then What? – All Star Charts
JC Parets examines the outlook for Tech.
Growth Stocks Begin Down a Slipery Slope – StockCharts.com
David Keller highlights some potential headwinds for stocks in the near term.
Long End Historically Oversold – Bespoke
Bespoke looks at the recent action in Treasury yields.
Some Unsettling Stock Market Charts That May Help You Stay Grounded 🧘🏻 – TKer
Sam Ro puts the recent weakness into historical context.
Top Tweets
Daily Mkt Mood: Risk-On
1. Stocks up most since July 28
2. 4-day lose streak snapped
3. $VIX down
4. Bonds down
5. Yen downApple down though too and appears to be in full breakdown mode.
It’s hard to see mkt looking past $AAPL for long.
Seasonal pullback prob in effect too.
— Abigail Doolittle (@TheChartress) August 7, 2023
This failed breakout from the Tech sector is a problem pic.twitter.com/AfIeLDr018
— Austin Harrison, CFA, CMT (@meanstoatrend) August 7, 2023
-down 5 days in a row (first time this year)
-under 50dma (which is now rolling over)
-10% from ATH
-still below the uptrend line pic.twitter.com/MTkrXV6Vyd— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) August 7, 2023
Apple $AAPL coming right back in and failing to hold above the 2022 highs/support. pic.twitter.com/OcVYePpWbz
— Greg Rieben (@gregrieben) August 7, 2023
Interesting spread today in the two biggest Buffett positions. $BRK.B strong breakout to new highs.$AAPL pulling back with weekly support below. pic.twitter.com/gVzNPEDej4
— Larry Tentarelli, Blue Chip Daily (@LMT978) August 7, 2023
It's a small-cap summer😎
Seriously tho, the Russell 2000 index of small-cap stocks is heading for its best summer vs. the S&P since 2016$SPX $RTY pic.twitter.com/ubSaXR91X7
— Callie Cox (@callieabost) August 8, 2023
Regionals once again trying. not a bad R/R spot on a relative basis. $KRE $SPX pic.twitter.com/Yfio9XwLNV
— Ian McMillan, CMT (@the_chart_life) August 7, 2023
Big, regional, and community banks are back above the 2020 lows and are reaching 4-month highs relative to the S&P 500 👀 pic.twitter.com/BBSbUA51zN
— Alfonso Depablos (@AlfCharts) August 7, 2023
GLD big picture, via 7% box size. pic.twitter.com/jpEnkuUNGP
— Mark Ungewitter (@mark_ungewitter) August 7, 2023
Lot of eyes on Uranium here $URNM pic.twitter.com/V6F63ab3rm
— Jay R. Ligon (@TheeDisruptor) August 7, 2023
Did they turn off $BTC #Bitcoin? pic.twitter.com/5ABfGaIgJu
— Michael Nauss, CMT, CAIA 🇨🇦 (@MichaelNaussCMT) August 7, 2023