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Today’s Summary
Wednesday, August 25th, 2021
Indices: US Stocks continued to higher in today’s session. The Dow inched up 39 points or 0.11%. The S&P 500 and Nasdaq rose 0.22% and 0.15%, respectively. The Russell 2000 outperformed, gaining 0.37%.
Sectors: 7 of the 11 sectors closed higher. Financials led, gaining 1.18%. Health Care lagged falling 0.27%.
Commodities: Crude Oil futures continued to rebound by 1.21% to $68.36 per barrel. Gold futures dropped 0.97% to $1,791 per ounce.
Currencies: The US Dollar Index ticked lower by 0.06%.
Interest Rates: The 10-year US Treasury yield rose to 1.344%.
are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by Jeff Hirsch (@AlmanacTrader). It’s a seasonality chart of the Small-Cap Russell 2000 vs. the Large-Cap Russell 1000 (based on data from 1979-2021). When the line is rising, it means Small-Caps are outperforming Large-Caps and vice versa. Jeff points out that Small-Caps have historically outperformed from the end of August until mid-September. Small-Caps have come roaring back to life this week. Last Thursday, the Russell 2000 was on life support, testing the 200-day moving average for the first time in nearly a year. But, buyers stepped in exactly where they needed to, and the index has closed higher every day since. Despite this week’s reversal Small-Caps are still in desperate need of repair given the fact that the Russell 2000 hasn’t made a new high since March. Could this seasonal tailwind be the juice that nourishes Small-Caps back to health over the next few weeks? For more on this, read the full note here.
Quote of the Day
“The cleverest of all, in my opinion, are those who call themselves fools at least once a month.”
– Fyodor Dostoevsky
Top Links
Mid Week Update – The Chart Report
In this quick video, Steve Strazza and I discuss several hot topics, including the weakness in Small-Caps, Whipsaws, and Chinese Equities.
6 Charts on Stocks Making New All-Time Highs – LPL Financial Research
With the S&P 500 closing at a record high for the 51st time this year, the team at LPL Financial Research shares some insightful stats about all-time highs.
Small Caps Try to Rebound; Will They Get in Gear – Potomac Fund Management
Dan Russo takes a look at the sharp reversal in Small-Caps and more.
Nasdaq 100 Could See Short Term Consolidation: Fairlead Strategies Founder – CNBC
Katie Stockton shares her cautious outlook on the Nasdaq.
Current Market View – AlphaCharts
Brian at AlphaCharts highlights a few noteworthy trends across the markets.
Top Tweets
51st record high this year
— Eddy Elfenbein (@EddyElfenbein) August 25, 2021
#RTY_F, 1d
Sometimes Mr Market makes it crystal clear.
In the Russell’s case, if the index can move above the 2350 resistance during the next several weeks, another multi-months rally could be expected. pic.twitter.com/Qkhz4c3S7j
— Yuriy Matso (@yuriymatso) August 25, 2021
When the S&P 500 is up >15% YTD at the end of August (like '21 will likely be), big drops the rest of the year are rare.
In fact, continued strength is the norm.
Yes, '87 is in here, but up 38% YTD was a really stretched rubber band. pic.twitter.com/597eXsTSH7
— Ryan Detrick, CMT (@RyanDetrick) August 25, 2021
#RTY_F, 1d
Sometimes Mr Market makes it crystal clear.
In the Russell's case, if the index can move above the 2350 resistance during the next several weeks, another multi-months rally could be expected. pic.twitter.com/Qkhz4c3S7j
— Yuriy Matso (@yuriymatso) August 25, 2021
II Bulls down to 50% -> lowest level since May 2020.
Looks like we are poised for a more complete re-set in sentiment than what has been seen over the past year. pic.twitter.com/8ABjY8TNlq
— Willie Delwiche (@WillieDelwiche) August 25, 2021
Baltic Dry Index rises for 11th consecutive day to highest level since mid-2010 pic.twitter.com/HvXPSUBaTT
— Liz Ann Sonders (@LizAnnSonders) August 25, 2021
Marine Shipping showing some breadth on the new highs list…$ZIM $DAC $CMRE $GRIN pic.twitter.com/lU7QkYjOPr
— Ian McMillan, CMT (@the_chart_life) August 25, 2021
10-year US Treasury #yield back at 1.34%, up 5 basis points. pic.twitter.com/Olb4FAKlI8
— jeroen blokland (@jsblokland) August 25, 2021
10-Year Treasury Bond Yields are breaching the upper band of the well-defined downtrend channel in effect since April… we suspect 1.45% is in the cards. pic.twitter.com/KwCAH3yV4t
— Carter Braxton Worth (@CarterBWorth) August 25, 2021
Who said Utilities aren't sexy!$NRG pic.twitter.com/4tYP7p4yPv
— Ken Goodreau, CMT (@KenGoodreau) August 25, 2021
You’re all caught up now. Thanks for reading!