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Today’s Summary
Wednesday, August 19th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average slipping 85 points or 0.31%. The S&P 500 and Nasdaq fell 0.44% and 0.57%, respectively. Small-Caps outperformed with the Russell 2000 inching higher by 0.15%.
Sectors: All 11 sectors closed lower. Financials led, slipping just 0.04%. Real Estate lagged, falling 2.05%.
Commodities: Crude Oil futures were flat, and continue to trade at $43.11 per barrel. Gold futures dropped 3.92% to $1,934 per ounce.
Currencies: The US Dollar Index rose 0.74%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.683%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
In fact, $SPY volume over the past 5 days has never been lower, even during holiday weeks. Volume always spikes into sell off lows; arguably, it starts to rise into highs, too (lower panel) pic.twitter.com/28l95L2WDf
— ukarlewitz (@ukarlewitz) August 19, 2020
Today’s Chart of the Day was shared on Twitter by Urban Carmel (@ukarlewitz). The market has been extremely quiet lately in terms of volume, despite the recent breakout to record highs. Urban points out that the 5-day rolling average of volume on $SPY has never been this low, even during holiday weeks. Some would argue that this is bearish because you want to see high volume confirming a breakout. We would argue that volume isn’t very useful anymore in today’s world of dark pools and high-frequency trading. Also, it’s quite common to see low-volume in the late-summer months. Urban shows that low volume, on its own, isn’t necessarily bearish. If anything, volume often rises along with price into market tops rather than falling like it is now. In a comment to The Chart Report, Urban said, “volume is highest during periods of stress: participants get bullish at different rates but panic all at once.” The bottom line here? Low volume isn’t a major risk at this point.
Quote of the Day
“Headlines, in a way, are what mislead you because bad news is a headline, and gradual improvement is not.”
– Bill Gates
Top Links
5 Charts to See With Stocks At New Highs – LPL Financial Research
The team at LPL Financial Research shares five must-see charts that put this year’s price action into perspective.
The S&P 500 Hits a New High But Few Joined the Party – Andrew Thrasher
Andrew Thrasher highlights some signs of weakness under the surface amid new highs in the S&P 500.
Piper Sandler: There’s More Upside to Equities From Here – CNBC
In this clip, Craig Johnson of Piper Sandler discusses why he thinks stocks will head higher into the end of the year.
Inflationary Winds Blowing Across Assets – Fibonacci.com
Tarek Saab offers his technical perspective on Stocks, Metals, and other Commodities.
This Breakout Could Take Stocks Even Higher – Rieben Financial
Greg Rieben explains that FAANMG stocks could propel the broader market higher.
Top Tweets
NQ, 5m
'You shall not pass' pattern again…
Now we know that the bull market continues only if NQ / NDX can clear the 11438 resistance. pic.twitter.com/SfHNiujLUU
— Yuriy Matso (@yuriymatso) August 19, 2020
The $NDX chart is as clear as it gets – higher highs & higher lows is an uptrend – that is what matters in markets.
Not put/call ratios, sentiment, divergences, PE or other distractions that some use to try to justify being on the wrong side or to try to fight the tape. pic.twitter.com/ttHvz6V33q
— Larry Tentarelli, Blue Chip Daily (@LMT978) August 19, 2020
S&P 500 back to all-time highs but % of members making a new 52w highs hovering around 6% … we’ve seen broader participation since market’s ascent from lows, but well below levels around February peak @Bloomberg pic.twitter.com/cgniDXAkLh
— Liz Ann Sonders (@LizAnnSonders) August 19, 2020
While the S&P500 closed at a new record high, the equal-weight $SPX is still 6% below its record high and yet to break June highs. Advance-Decline line (common stock only) is rolling over recent pop, while 60% of $SPX is above 200-day MA, much less than during last record high pic.twitter.com/WByNJxuE7a
— Michael McKerr (@MikeMcKerr_TDA) August 19, 2020
Amid the celebrating of new $SPX high and death of the bear market, take a moment to consider what message the Value Line Geometric Index (lower high and lower low since it peaked in Q3 2018) might be sending. pic.twitter.com/T1C0uL4yIu
— Willie Delwiche (@WillieDelwiche) August 19, 2020
The Copper weekly chart from 2011 ? $HG_F $JJC $FCX $SCCO pic.twitter.com/mV5VxtNiQt
— Aaron (@ATMcharts) August 19, 2020
Oversold $USD, with the incredibly bearish sentiment, has been ripe for a rebound rally.
Finally, today we have what looks to be a major reversal. pic.twitter.com/PNnRXzgOGe
— Tiho Brkan (@TihoBrkan) August 19, 2020
could be something here…$DXY $UUP $XAU $TLT pic.twitter.com/jcSWAis4bn
— J4 (@J4_doji) August 19, 2020
The 30-day correlation to 5y real yields:#bitcoin -.88$SPX -.92#gold -.94
Literally just one trade. https://t.co/CfyPzHH8DB
— TheMacroStrategist (@TheMacroStrat) August 19, 2020
Textbook Cup & Handle in the world's largest retailer? $WMT pic.twitter.com/HNTidWA56s
— Louis (@haumicharts) August 19, 2020
If you think you are having a bad day keep in mind Byrne would be a Billionaire. $OSTK pic.twitter.com/AqmBD4IHab
— Arun S. Chopra CFA CMT? (@FusionptCapital) August 19, 2020