Powered By:
Today’s Summary
Monday, August 28, 2023
Indices: Russell 2000 +0.83% | Nasdaq +0.74% |S&P 500 +0.63% | Dow +0.62%
Sectors: 10 of the 11 sectors closed higher. Communications led, gaining +1.22%. Utilities lagged, closing flat (-0.02%).
Commodities: Crude Oil futures rose +0.34% to $80.10 per barrel. Gold futures gained +0.36% to $1,947 per oz.
Currencies: The US Dollar Index fell -0.20% to $103.98.
Crypto: Bitcoin was flat at $26,103. Ethereum fell -0.34% to $1,652.
Interest Rates: The US 10-year Treasury yield fell to 4.208%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Who's buying Chinese equities at this shelf of former lows?$KWEB pic.twitter.com/4NCDrDu4W0
— Alfonso Depablos (@AlfCharts) August 28, 2023
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). Chinese stocks are starting to appeal to contrarians as telltale signs of extreme pessimism emerge. This week’s cover of The Economist features a caricature of Xi Jinping riding a half-snail half-dragon with the caption: “Xi’s Failing Model: Why he won’t fix China’s economy.” It’s not just The Economist showing hate for Chinese equities. Jason Goepfert of SentimenTrader pointed out today that the number of negative news articles on China is at a record high. Despite the bearish narrative, Alfonso shows that the Chinese Internet ETF ($KWEB) has reclaimed support at $26.50, and has formed an inverted head & shoulder pattern. Contrarians aren’t necessarily betting Xi will save the day, but rather, they’re betting that the worst has already been priced in for Chinese equities.
Quote of the Day
“There’s no such thing as a good or bad idea in the investment world. It’s a good idea at a price; it’s a bad idea at a price.”
– Howard Marks
Trendlines > Headlines
Check out the latest episode of Trendlines over Headlines!
This week, Market Wizard John Netto joins us to discuss the current market environment and his approach to trading.
Top Links
No Defense At All – All Star Charts
JC Parets points out that we haven’t seen a flight to safety amid the recent pullback.
Energy Remains the Cheapest Sector in the Market: Renaissance Macro’s Jeff DeGraaf – CNBC
Jeff deGraaf shares his outlook on the broader market, the Energy sector, and Chinese equities.
China’s Shanghai Composite Stock Index Nearing “Decision Time”! – Kimble Charting Solutions
Chris Kimble points out that the Shanghai Composite is reaching the apex of a triangle pattern.
Necklines – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most significant technical developments.
Top Tweets
The S&P 500 posts back to back gains for the first time this month! And narrowly avoids failing to do so for the first time in more than 22 years. https://t.co/s5bCvxS8Fu pic.twitter.com/KKar3KE8Vw
— Barchart (@Barchart) August 28, 2023
$QQQ Now if bulls can follow up with another higher high this week, they might be onto something. 👀🍿 pic.twitter.com/0zROfRaczX
— TrendSpider (@TrendSpider) August 28, 2023
The S&P 500 hasn't notched a 2% move in more than 6 months–calmest stretch since 2018 and one of the longest of the past 25 yearshttps://t.co/Y2IECaznAX @WSJmarkets pic.twitter.com/V6hjC9MIpd
— Gunjan Banerji (@GunjanJS) August 28, 2023
Comment: market breadth. Percentage of SPX stocks >200dma is pushing the limit of what has constituted normal early-cycle behavior since 2009. pic.twitter.com/YeycFmoUDf
— Mark Ungewitter (@mark_ungewitter) August 28, 2023
S&P 500 Homebuilding Index now in correction territory … current drawdown certainly not as bad as what was endured from 2021-2022, though
[Past performance is no guarantee of future results] pic.twitter.com/phOSsn4fTH
— Liz Ann Sonders (@LizAnnSonders) August 28, 2023
Consensus is that these all break to the upside. pic.twitter.com/unjMezninr
— Dan Russo, CMT (@DanRusso_CMT) August 28, 2023
Today was the 7th time since 2005 that China's CSI 300 gapped up 5%+ at the open. pic.twitter.com/MfjbE3aHrM
— Bespoke (@bespokeinvest) August 28, 2023
Speaking of China, the Shanghai Composite may have finished higher Monday, but the close-over-close +1.1% doesn't do justice to the biggest opening gap higher (+5.1%) since July 2015 on news the gov't cut taxes on shares trading for the first time since 2008. $SHCOMP pic.twitter.com/4aSoiNrcgx
— John Kicklighter (@JohnKicklighter) August 28, 2023
Speaking of China, the Shanghai Composite may have finished higher Monday, but the close-over-close +1.1% doesn't do justice to the biggest opening gap higher (+5.1%) since July 2015 on news the gov't cut taxes on shares trading for the first time since 2008. $SHCOMP pic.twitter.com/4aSoiNrcgx
— John Kicklighter (@JohnKicklighter) August 28, 2023
$KWEB $KBA $FXI $MCHI
I guess we’re due up for geographical rotation based on these magazine covers pic.twitter.com/2TUZr1oLln— Jonathan Harrier, CMT (@jonathanharrier) August 28, 2023