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Today’s Summary
Friday, August 14th, 2020
Indices: US Stocks were little changed in today’s session. The Dow Jones Industrial Average inched higher by 34 points or 0.12%. The S&P 500 was flat (-0.02%), while the Nasdaq fell 0.21%. The Russell 2000 slipped 0.12%.
Sectors: Energy led, rising 0.95%. Utilities lagged, falling 0.87%.
Commodities: Crude Oil futures were flat and continue to trade at $42.23 per barrel. Gold futures moved lower by 0.85% to $1,954 per ounce.
Currencies: The US Dollar Index slipped 0.15%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.707%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Prior uptrend, multi-year consolidation, base breakout, new uptrend? pic.twitter.com/lDRxT1SUcA
— J.C. Parets (@allstarcharts) August 14, 2020
Today’s Chart of the Day was shared on Twitter by JC Parets (@allstarcharts). It’s a weekly candlestick chart of Bitcoin over the past five years. Remember Bitcoin Mania in 2017? The cryptocurrency surged more than 1,800% that year, from under $1,000 to a peak of about $19,000. JC points out that the 2.5 years since the peak can be viewed as consolidation within a primary uptrend. He adds that price is breaking out of a long-term base, signaling the start of a new leg higher. Bitcoin is currently trading at $11,775. As long as price remains above that key $10,000 level, the risk is to the upside.
Quote of the Day
“You know you’re doing what you love when Sunday nights feel the same as Friday nights.”
– Donny Deutsch
Top Links
Shifting Winds Suggest Volatility Poised to Pickup – Baird
Baird strategist, Willie Delwiche shares his outlook on the S&P 500.
Trading a Trending Market – TraderFeed
Here’s a great read from trading psychologist, Dr. Brett Steenbarger. He discusses the importance of identifying short-term trends within long-term trends.
When a Few Basis Points Packs a Punch – Bespoke
Bespoke takes a look at the recent weakness in Treasury Bonds.
Time for a Little Firmness in Bond Yields? – StockCharts.com
Respected technician, Martin Pring explains why he thinks Treasury yields will move higher.
Risk Managers Throw Caution to the Wind – Dana Lyons
Dana Lyons shares his thoughts on the results of the most recent NAAIM sentiment survey.
Top Tweets
Lightest volume day of the year…something about August? folks obvious too the first train out this morning to the Hamptons…
— Linda Raschke (@LindaRaschke) August 14, 2020
FANG, Semis, Home Construction, Rails and Trucking all made all-time weekly closing highs.
Definitely not a "narrow market". $NYFANG $SMH $ITB $DJUSRR $DJUSTK pic.twitter.com/d5Rd37tyxg
— Larry Tentarelli, Blue Chip Daily (@LMT978) August 14, 2020
$QQQ Is this what rotation looks like? Outperforming, RSI in bullish ranges, short-term trend in tact, above the 21, 50 and 200 DMAs. pic.twitter.com/AbwHTxlv8m
— Dan Russo, CMT (@DanRusso_CMT) August 14, 2020
Notable shift here… Transportation vs. "Stay At Home" pic.twitter.com/NzOGedYjPe
— Strategas (@StrategasRP) August 14, 2020
$TAN Solar ETF at an interesting point here. Monthly chart. pic.twitter.com/JUDZhuKhGt
— Tex (@theycallmetex) August 14, 2020
How about this week for #natgas $UNG? Gap-up Sunday night, big increase Monday morning, bullish consolidation intra-week, then a jolt to fresh YTD highs today. @enelyst_ pic.twitter.com/b0R39dIYgS
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 14, 2020
$DBA Agriculture (Commodities) … pic.twitter.com/ZKFJxzs3BQ
— Ian McMillan, CMT (@the_chart_life) August 14, 2020
Seeing long bonds $TLT differently over the last two weeks. Now recognizing 170-172 as key resistance (on a closing basis) and now a triple top in that range. Seems like limited upside and plenty of downside for bonds. pic.twitter.com/yl2yu450CN
— David Keller, CMT (@DKellerCMT) August 14, 2020
Building on the fantastic chart by @allstarcharts and the "Free Money" magazine cover:
Here are some other times when Rates were *THE* hot cover story.
With Bond Volatility also at record lows, is this a contrarian's dream trade (again)? Stay tuned…
Have a great weekend. pic.twitter.com/LtQzf894lS
— Macro Charts (@MacroCharts) August 14, 2020
Amazing what a 50% rally in the S&P 500 will do for sentiment. pic.twitter.com/bf7xbCq86J
— Ryan Detrick, CMT (@RyanDetrick) August 14, 2020