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Today’s Summary
Wednesday, September 2nd, 2020
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average advancing 455 points or 1.59%. The S&P 500 and Nasdaq closed at fresh all-time highs, rising 1.54% and 0.98%, respectively. The Russell 2000 underperformed but still gained 0.87%.
Sectors: 10 of the 11 sectors closed higher. Utilities led significantly, rising 3.11%. Energy was the only sector to close lower, falling 0.48%.
Commodities: Crude Oil futures dropped 2.92% to $41.51 per barrel. Gold futures fell 1.40% to $1,949 per ounce.
Currencies: The US Dollar Index rose 0.37%.
Interest Rates: The US 10-year Treasury yield fell for the fourth straight day to 0.653%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The liquidity trade… IPO's pic.twitter.com/VaBgVkGE5E
— Strategas (@StrategasRP) September 2, 2020
Today’s Chart of the Day was shared on Twitter by Strategas Research Partners (@StrategasRP). It’s a chart of the IPO index over the past three years on both an absolute (top) and relative (bottom) basis. The IPO index is comprised of recently listed US companies. Right now, the top five holdings include $ZM, $UBER, $PDD, $MRNA, $CRWD. In a comment to The Chart Report, Todd Sohn of Strategas told us, “The fact that this high beta group is at all-time highs on both an absolute and relative basis is further evidence of risk appetite and liquidity. We consider this price action to be supportive of the bull case for stocks.”
Quote of the Day
“The trend is innocent until proven guilty.”
– Unknown
Top Links
3 Charts to Watch If You Are Bullish – LPL Financial Research
Here are three must-see tables that put the current market into perspective.
Jerry Parker Talks Best Ways To Identify Market Trends – TD Ameritrade Network
Trend following legend, Jerry Parker shares his thoughts on Currency and Commodity markets.
Technology Today vs. History – Bespoke
Bespoke examines the surge in Technology stocks relative to the other sectors of the S&P 500.
Treasury Yield Reverses HARD Off The Lows – Big Trends Monthly
Josh Brown and JC Parets review monthly candlestick charts to highlight some of the most important trends across the markets.
5 Reasons the Bul Market Could Continue – Fidelity
Jurrien Timmer of Fidelity explains why he thinks the current bull market is sustainable.
Top Tweet
Did anyone have this headline today?
“Utilities spike to lead $SPX to its biggest gain in two months.”
— Frank Cappelleri (@FrankCappelleri) September 2, 2020
Just wow! The #NASDAQ 100 Index is up another day, bringing the total gain for this year close to 42%. We know this trend will reverse at one point, but who wants to fight this massive amount of momentum. I don't… pic.twitter.com/iYeL1HFvwr
— jeroen blokland (@jsblokland) September 2, 2020
$DIA not my core market but leading on the day is a sign of strength broadening across much more than tech. pic.twitter.com/LksJOx1KKm
— Larry Tentarelli, Blue Chip Daily (@LMT978) September 2, 2020
You wanted breadth, you got it. Booya! what a day pic.twitter.com/38gSlbanix
— Oliver Renick (@OJRenick) September 2, 2020
More than twice as many $SPX stocks made new highs today vs yesterday, and it's the most since January. Looks like evidence that the army is catching up with the generals and breadth looks bullish to me. pic.twitter.com/kaIQODCLST
— Willie Delwiche (@WillieDelwiche) September 2, 2020
The equal-weight S&P500 is bursting higher from wide multi-month technical triangle (borderline bullish ascending), surpassing its June highs. Pattern target, if validated, would be width of triangle added to breakout point. Will this be a breakout or fake out? $SPX #SP500 $SPXEW pic.twitter.com/k3Ozz02Qbx
— Michael McKerr (@MikeMcKerr_TDA) September 2, 2020
Are U.S. financials tired of lagging as they bump up against the falling 200 dma for the third time $XLF pic.twitter.com/XEpQhusNMp
— Frances Horodelski (@fhoro) September 2, 2020
The 20-day range of US crude oil as a percentage of spot is the lowest it has been since the holiday period of 2018. Are we do for a break and greater activity soon? pic.twitter.com/lnkCtW4YkB
— John Kicklighter (@JohnKicklighter) September 2, 2020
Seeing silver as a breakout from a short-term consolidation pattern, now retesting the range of the pennant. Long-term remains positive as long as $SLV remains above 24.25. pic.twitter.com/XoOqEkPUFK
— David Keller, CMT (@DKellerCMT) September 2, 2020
When Tech plays well, $SPX wins based on market capitalizations.
When Tech doesn’t play well, $SPX wins based on everything else playing well.
So. Much. Winning.
— Steve Deppe, CMT (@SJD10304) September 2, 2020