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Today’s Summary
Friday, August 21st, 2020
Indices: US Stocks ended the week on a positive note with the Dow Jones Industrial Average advancing 191 points or 0.69%. The S&P 500 and Nasdaq moved higher by 0.34% and 0.42%, respectively. Small-Caps underperformed, with the Russell 2000 falling 0.76%.
Sectors: Technology led for the second straight day, gaining 1.27%. Energy lagged for the second straight day, falling 0.63%.
Commodities: Crude Oil futures moved lower by 1.12% to $42.34 per barrel. Gold futures were unchanged and continue to trade at $1,947 per ounce.
Currencies: The US Dollar Index rose 0.50%.
Interest Rates: The US 10-year Treasury yield fell to 0.636%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$AAPL 20-day rate-of-change now over 34%
Since '00, only times this high were Jan '01, May '03, Nov. '04, and April '09.
Three were coming off major bottoms, only Nov. '04 was while at a high. Pretty remarkable. pic.twitter.com/RiNfAsUAOv
— Jonathan Krinsky,CMT (@jkrinskypga) August 21, 2020
Today’s Chart of the Day was shared on Twitter by Jonathan Krinsky of Baycrest Partners (@jkrinskypga). The chart shows Apple Inc. ($AAPL) over the past 20-years. Apple has been on an incredible run lately. Just yesterday it became the first company to cross $2 trillion in market cap, and today the stock soared another 5%. Jonathan points out that the 20-day rate of change is now over 34% – the fifth-largest 20-day gain for the stock in the past two decades. The stock is currently trading just under $500, which represents the 261.8% Fibonacci extension of the Feb-March decline. Keep in mind, the stock will undergo a 4-for-1 split at the end of this month. Will momentum bring further gains for the largest company in the world, or is this a logical place for a pause/correction?
Quote of the Day
“The press and the stock price will take care of themselves.”
– Steve Jobs
Top Links
New Highs – Now What? – Ally Invest
Lindsey Bell of Ally Invest examines the outlook for the S&P 500 after hitting record highs this week.
Happy Hour w/ Traders: The Breadth Debate – All Star Charts
Here’s a good discussion about market breadth. JC Parets, Mike Hurley, Andrew Thrasher, Willie Delwiche, and Steve Strazza debate whether or not breadth divergences warrant caution right now.
New 52-Week Highs Underwhelm, But Outpace New Lows – Trend Investor Pro
Arthur Hill shares his perspective on market internals.
Agricultural Commodity Trend Reversal – What the FICC?
In this week’s episode of What the FICC, Tom Bruni takes a look at a potential trend reversal brewing in the Agricultural Commodity space.
Stock Market Video Analysis for Week Ending 8/21/20 – AlphaTrends.Net
Brian Shannon highlights some levels of interest to keep an eye on next week.
Top Tweets
Over the last ~5 months:
– NYFANG +115%
– Silver +157%
– Bitcoin +219%
– Lumber +230%
– Tesla +498%#bubbles— Abigail Doolittle (@TheChartress) August 21, 2020
Are only a few names that make up a good portion of the $SPX gains?
Yes, but is that b/c of weighting of the $SPX or Breadth?
It is the former actually – the S&P 500 is market cap weighted… the bigger names are the higher weights so by default that;s what they do
see next
— Christian Fromhertz (@cfromhertz) August 21, 2020
This chart still has my attention, the failure at the June levels for mid- and small-caps.
Mega caps have clearly been in the driver seat but can't lose focus of other corners of the equity market. pic.twitter.com/R2JtnIciXM
— Andrew Thrasher, CMT (@AndrewThrasher) August 21, 2020
That's now 9 weeks in a row to the upside for $XLY. pic.twitter.com/7ebfl1J0Pu
— Steve Deppe, CMT (@SJD10304) August 21, 2020
Happy Friday party people $XRT $SPY $SPX #retail #stocks pic.twitter.com/LlhtRAWuG9
— Drew Wells, CMT, CIMA® (@DrewTheCharts) August 21, 2020
Semiconductors relative to QQQ$SMH $QQQ $XLK pic.twitter.com/oW1NFcDLTG
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) August 21, 2020
Growth vs. value hit yet another 52-week high this week. Not sure when the value trade returns, but not today! $IWF $IWD $RLG $RLV pic.twitter.com/ZWmZCZi9s3
— David Keller, CMT (@DKellerCMT) August 21, 2020
Lumber: Day 21 above the 5 SMA. Every futures market has had at least one case of 26 – 27 closes on one side of the 5 SMA over the past 20 years. (LB has had 27 closes on one side in the past…..) pic.twitter.com/g4g5tudLV7
— Linda Raschke (@LindaRaschke) August 21, 2020
The divergence between the US 10yr Treasury Yield and the Copper vs. Gold ratio is extremely notable.
We've heard the mantra of "lower for longer" all of 2020, but this precious metals ratio points to a different possibility…$HG_F $GC_F $TNX pic.twitter.com/KrFU0oDmXI
— Michael Roberts Associates Inc. (@MRA_Planners) August 21, 2020
$ZM Zoom Video …Another leg higher? pic.twitter.com/TLWvdyVL5F
— Ian McMillan, CMT (@the_chart_life) August 21, 2020
Since they announced their stock splits in the last month, Apple is up 29% and Tesla is up 53%.
— Bespoke (@bespokeinvest) August 21, 2020