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Today’s Summary
Thursday, August 20th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average inching up 47 points or 0.17%. The S&P 500 and Nasdaq rose 0.32% and 1.06%, respectively. Small-Caps underperformed with the Russell 2000 falling 0.49%.
Sectors: Technology led, gaining 1.33%. Energy lagged, falling 2.16%.
Commodities: Crude Oil futures moved lower by 0.67% to $42.82 per barrel. Gold futures rose 0.64% to $1,947 per ounce.
Currencies: The US Dollar Index fell 0.28%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.649%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
FANG+ stocks pushing to new relative highs against the strongest index in the world. $QQQ $TSLA $TWTR $AAPL $FB $GOOGL $BABA $NFLX pic.twitter.com/YhTwxGBdpk
— Ian McMillan, CMT (@the_chart_life) August 20, 2020
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). The chart shows the FANG+ ETF, $FNGS, relative to the Nasdaq 100. $FNGS is comprised of 10 of the most beloved stocks in the market including, $TWTR, $TSLA, $AAPL, $FB, GOOGL, $BABA, $NFLX, $AMZN, $BIDU and $NVDA. Ian points out that $FNGS is breaking out of a 1-month base relative to the Nasdaq 100. Many seem to be fixated on the bearish narrative that these stocks have become ‘too big.’ However, Ian explains that it’s not bearish to see the strongest players on the team scoring the majority of the points. In a comment, Ian said, “If the strongest (and most important) stocks in the strongest index are outperforming, do you see how it’s hard for me to believe that said index is close to changing trend?”
Quote of the Day
“There are no happy endings in history, only crisis points that pass.”
– Issac Asimov
Top Links
The Bull Market Top Checklist: What Would Change My Mind? – StockCharts.com
David Keller shares five potential developments that would signal a bearish a trend reversal.
The Other 94% – The Irrelevant Investor
Michael Batnick weighs-in on market breadth.
Silver Bulls Should Be Very Concerned If This Takes Place!!! – Kimble Charting Solutions
Chris Kimble points out that the Silver Miners ETF, $SIL, is attempting to break out of an 8-year trading range.
August Conference Call: 5 Key Takeaways
The team at All-Star Charts highlights five of the most important charts they’re watching right now.
September Almanac: Only Modest Improvements in Election Years – Almanac Trader
Seasonality expert, Jeff Hirsch shows that September has historically been a lousy month for Stocks, even in election years.
Top Tweets
$SPY giving some back here shouldn't be a shocker. Last 2 v rallies that jump out to me have given a little back / met some resistance at the prior high before continuing up pic.twitter.com/PtRDamk0Oo
— Gregory Krupinski (@G_krupins) August 20, 2020
Experience of past few years shows rallies to (and even through) previous peaks struggle to gain traction when the new high list is not meaningfully expanding. pic.twitter.com/lVnIIppTmI
— Willie Delwiche (@WillieDelwiche) August 20, 2020
Got this chart from one of my favorite follows, Jason @deltaStrikejj . Cumulative AD cross below 40 ema gave great heads up of trouble Oct 18 & Feb 20. Also, gets back in well. Not designed for catching exact top or bottom but an excellent tool imo. Nice cushion currently. pic.twitter.com/fCdBeXLd2L
— Mountain View Trading (@DanWiserMtnView) August 20, 2020
Keep an eye on $SMH. Momentum indicators are turning down. Short term uptrend has been broken from June. However the uptrend from April low remains intact. #stockmarket #wealth. pic.twitter.com/taIocwSJ6X
— Bonnie Gortler (@Optiongirl) August 20, 2020
Emerging Markets are not all the same! Easy to lump them in as one trade but this chart shows differentiation between Asian and LatAm components.$EEM $EEMA $ILF h/t @LighthouseCap23 pic.twitter.com/FSe2RLzYOF
— David Keller, CMT (@DKellerCMT) August 20, 2020
Man, that Yen/Aussie is looking vulnerable. Notice how with each successive test of that support level, buyers of the Yen are in control for shorter and shorter periods? And when they are in control, they can't even get momentum in RSI above 50 $AUDJPY $JPYAUD pic.twitter.com/59yFjgHw9o
— Louis (@haumicharts) August 20, 2020
Important level here for crude oil. $CL_F $USO #oil pic.twitter.com/Gd3V78ARls
— Greg Rieben (@gregrieben) August 20, 2020
i don't care if you don't like the president or if a virus scares you. What I want to know is are the biggest and most important stocks in the world breaking out of bases to new all-time highs or are they completing tops and making new lows? Which of those environments are we in? pic.twitter.com/e1vXMRlGuC
— J.C. Parets (@allstarcharts) August 20, 2020
Today Tesla surpassed Walmart as the 9th largest stock in the United States w/a market cap of $371 billion
Annual Revenues:
Walmart – $523 billion
Tesla – $25 billion pic.twitter.com/NRSHWa3KsF
— Ben Carlson (@awealthofcs) August 20, 2020
One year ago, Tesla had a lower market cap than GM.
At $375 billion today, it now has a market cap that is higher than GM, Ford, Volkswagen, Fiat Chrysler, Daimler, BMW, Ferrari, and Honda … Combined.
Chart via @ycharts pic.twitter.com/ZzZ2rOEHFT
— Charlie Bilello (@charliebilello) August 20, 2020