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Today’s Summary
Monday, August 23rd, 2021
Indices: US Stocks kicked off the new week on a positive note, with the Dow rising 216 points or 0.61%. The S&P 500 rose 0.85%, closing just a hair shy of a record high. The Nasdaq, on the other hand, did close at an all-time high, gaining 1.55%. The Russell 2000 outperformed, rising 1.88%.
Sectors: 8 of the 11 closed higher. Energy led by a wide margin, gaining 3.75%. Utilities lagged falling 1.29%.
Commodities: Crude Oil futures snapped an eight-day losing streak, jumping 5.63% to $65.64 per barrel. Gold futures rebounded 1.25% to $1,806 per ounce.
Currencies: The US Dollar Index dropped 0.52%.
Interest Rates: The 10-year US Treasury yield ticked lower to 1.255%.
are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Did the $DXY just fake us out? $USD $UUP pic.twitter.com/dEltfXTwIC
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 23, 2021
Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). it’s a daily candlestick chart of the US Dollar index over the past year. The Dollar raised some eyebrows last week as it broke out to a nine-month high. Dollar strength tends to be a headwind for risk assets. So, last week’s breakout was a potential concern. However, the Dollar gave back a lot of last week’s gains in today’s session, and it’s trading back below the March highs. As Mike points out, this appears to be a failed breakout, and you know what they say about failed breakouts…“from failed moves come fast moves in the opposite direction.” If the Dollar continues lower, it would likely be positive for some of the things that have struggled this Summer like Emerging Markets, Precious Metals, Crude Oil, and even Crypto.
Quote of the Day
“The best time to plant a tree was 20 years ago. The second best time is now.”
– Chinese Proverb
Top Links
Small Caps and the 10-Year Note are Nearing an Important Resolution – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Moving Averages By Sector and Market Cap – Bespoke
Bespoke examines the strongest/weakest industry groups in terms of breadth.
Meta – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some important technical developments to keep an eye on this week.
Is the Weakness in Oil a Buying Opportunity? – Rieben Financial
Greg Rieben shares his thoughts on a potential rebound in Crude Oil.
What is the CNN Fear & Greed Index? – All Star Charts
JC Parets explains why the popular CNN Fear & Greed Index is a misleading indicator.
Top Tweets
50 Day SMA has been an area of support on the $SPX. Last week slight dip below the 30 and almost reaching the 50 day sma. $SPX almost at high!
Not a Recommendation. pic.twitter.com/paawcK5fJe
— James Boyd (@JBoyd_TDA) August 23, 2021
Party like its 1999 $QQQ #NASDAQ100 $NQ_F $SPY pic.twitter.com/JVBFXd1BeT
— TA Plot (@TaPlot) August 23, 2021
$RUT $IWM Rebounds. pic.twitter.com/S8apByZS2q
— Aksel Kibar, CMT (@TechCharts) August 23, 2021
$XLK vs $SPX
Technology vs S&P 500
This relationship now has a failed breakdown on a larger timeframe and a shorter timeframe. Probably not a detail to be ignored. pic.twitter.com/hKwlVWnQiS— Pratyush Tulsian (@PrattyCharts) August 23, 2021
Oil on pace for its first advance in 8 trading days, which is probably partly responsible for the 5% charge – the biggest in 5 months. Can't say it looks like traditional demand led but a weak dollar and broad risk bounce help pic.twitter.com/kboVDYHQB5
— John Kicklighter (@JohnKicklighter) August 23, 2021
Playing for a pullback in the US Dollar $DXY and a tradeable bounce in $EEM pic.twitter.com/QyHAaSFglJ
— Carter Braxton Worth (@CarterBWorth) August 23, 2021
looky looky….a little bear trap on one of the dogs…. pic.twitter.com/yHPeeGzXx4
— Linda Raschke (@LindaRaschke) August 23, 2021
Cotton. Ignore it if you'd like. $CT_F pic.twitter.com/3kj7bjKCCa
— Drew Wells, CMT, CIMA® (@DrewTheCharts) August 23, 2021
Bitcoin $70,000? pic.twitter.com/8oLzcVbggn
— Louis Sykes (@haumicharts) August 23, 2021
The total market cap of *all* cryptocurrencies combined is back above $2 trillion.
The all-time high, set in May, is $2.57 trillion. pic.twitter.com/dhFbKXsXM2
— TradingView (@tradingview) August 23, 2021
You’re all caught up now. Thanks for reading!