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Today’s Summary
Monday, August 24th, 2020
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 378 points or 1.35%. The S&P 500 and Nasdaq rose 1.00% and 0.60%, respectively. The Russell 2000 closed higher by 1.03%.
Sectors: Energy led, gaining 2.75%. Health Care lagged, falling 0.46%.
Commodities: Crude Oil futures inched higher by 0.12% to $42.39 per barrel. Gold futures fell 0.56% to $1,936 per ounce.
Currencies: The US Dollar Index moved higher by 0.11%.
Interest Rates: The US 10-year Treasury yield rose to 0.661%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$XLF Hanging on and bouncing off of trendline support. pic.twitter.com/FC1NeSo30v
— Greg Rieben (@gregrieben) August 24, 2020
Today’s Chart of the Day was shared on Twitter by Greg Rieben (@gregrieben). It’s a 4hr candlestick chart of the Financial Sector ETF ($XLF) over the past three months. The top holdings in this ETF include Berkshire Hathaway ($BRK.B), JP Morgan Chase ($JPM), Bank of America ($BAC), Citigroup ($C), and Blackrock ($BLK). Financials have been pretty lousy on both an absolute and relative basis. The sector hasn’t even been able to breach its June highs and is currently testing its uptrend line from May. So far, that trendline remains intact. Nevertheless, Financials are at a vulnerable spot here. Bulls want to see Financials join the party to the upside soon. If they fail to do so, it could spell trouble for the broader market. Keep an eye on this key sector in the near-term!
Quote of the Day
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.”
– George Soros
Top Links
Rotation INTO The Dow Stocks! – All Star Charts
JC Parets explains why he thinks the Dow Jones Industrial Average will head higher.
Silver/ Gold Ratio Records Biggest Rally in 13-Years! Now What? – Kimble Charting Solutions
Chris Kimble examines what the Silver/Gold Ratio could be telling us about Precious Metals as a whole.
Will Breadth Divergences Matter This Time? – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight some of the strongest stocks, trends, and themes across the markets.
Come Sail Away With Me – The Weekly Trend
In this week’s episode of The Weekly Trend Podcast, David Zarling and Ian McMillan discuss some of the noteworthy technical developments to be aware of.
Rotation Report I – The Rotation Report
Aaron Jackson lays out several charts that are worth keeping an eye on this week.
Top Tweets
brand new highs… pic.twitter.com/vvYf01XwAx
— KKern, TTB (@kkernttb) August 24, 2020
During today's session almost every "hesitation" chart moved in a favorable manner, including the Dow which maintained the "successful retest look" described in this week's video.
Dow has been the laggard off the low; thus, nice to see it holding up near key area. pic.twitter.com/nTs1zyUWjf
— Chris Ciovacco (@CiovaccoCapital) August 24, 2020
Is equal-weight S&P stalling at June highs or will it punch through? Still almost 7% below all-time high. Something to watch. $SPX $SPXEW pic.twitter.com/SvStApu2CW
— Michael Turvey (@MikeTurvey_TDA) August 24, 2020
Good to see improving breadth today supported by $IWM which has held rising 8 and 20 ema's since early July. Really want to see those levels hold for a broadening market rally. If not, 50 d sma and ~145 breakout area crucial to hold imo. pic.twitter.com/xZRtsKY4US
— Mountain View Trading (@DanWiserMtnView) August 24, 2020
The weekly global advance-decline line of 73 country indices in local currencies via BofA.
Still in a very solid uptrend. #notbearish pic.twitter.com/clfu03oD5E
— Alex Barrow (@MacroOps) August 24, 2020
Well, another move up today in the Offense v. Defense ratio $XLY v. $XLP as it continues its breakout to new multi-year highs. $XLY (Discretionary) +1.53% $XLP (Staples) +0.82%$SPY +1.01% pic.twitter.com/rE3KBXiogG
— Grayson Roze (@GraysonRoze) August 24, 2020
Transports be movin'
Transports vs S&P 500$IYT $SPX $SPY $ES_F pic.twitter.com/TCDTA6oKjF— David Zarling, CMT (@AdaptivCharts) August 24, 2020
VIX at trendline resistance$VIX $SPX pic.twitter.com/l5X5P0d4Q2
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) August 24, 2020
10 Year Yield $TNX appears to be consolidating in a bullish flag pattern with support at the 50DMA, and the 20DMA just below. Breakout would point to a rise to the 0.85% level from here. Great for $XLF, bad for $NDX. The speed we get there will dictate if market can sustain rally pic.twitter.com/vZUEIvoQ5X
— Michael Sroga, CMT (@M_Sroga) August 24, 2020
Interesting spot for commodities on an absolute basis while the relative to $SPX there is still work to be done. pic.twitter.com/UKKUdiMun4
— Dan Russo, CMT (@DanRusso_CMT) August 24, 2020
$AAPL is 57% above its 200 dma, the highest since 2007 — the year the iPhone was introduced pic.twitter.com/xM76dr6RFI
— Sarah Ponczek (@SarahPonczek) August 24, 2020
$LUMBER pic.twitter.com/3fitBkAnTE
— Arun S. Chopra CFA CMT? (@FusionptCapital) August 24, 2020