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Today’s Summary
Tuesday, September 7th, 2021
Indices: US Stocks closed lower to start the week, with the Dow falling 269 points or 0.76%. The S&P 500 slipped 0.34%, while the Nasdaq was pretty much flat (0.07%). The Russell 2000 closed lower by 0.72%.
Sectors: 3 of the 11 sectors closed higher. Consumer Discretionary led, gaining 0.29%. Industrials lagged, falling 1.73%.
Commodities: Crude Oil futures fell 1.36% to $68.35 per barrel. Gold futures dropped 1.92% to $1,799 per ounce.
Currencies: The US Dollar Index gained 0.34%.
Interest Rates: The 10-year US Treasury yield rose to a 1-month high of 1.377%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
What's it mean for stocks if the $SPY vs $TLT ratio makes a sustained breakout from its year-to-date range pic.twitter.com/6HFsjg9azD
— Steven Strazza (@sstrazza) September 7, 2021
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a ratio chart of Stocks vs. Bonds (SPY/TLT), along with the Russell 2000 index over the past couple of years. As a reminder, when the ratio is rising, it means Stocks are outperforming Bonds and vice versa. Steve points out that this ratio broke out of a six-month consolidation in today’s session. In a comment to The Chart Report, Steve said ” It’s hard to argue that SPY/TLT resolving higher could be anything but bullish for risk assets and the broader stock market. Also, this breakout should bode well for Small-Caps given that the Russell 2000 has been trading in tandem with this ratio for a while now.”
Quote of the Day
“There are no good or bad stocks,
there are only rising and falling stocks.”
– Nicolas Darvas
Top Links
September 6: The Traditional Market Peak – Crossing Wall Street
Eddy Elfenbein points out that the Dow has historically peaked around September 6th (yesterday), until October 29th.
Bespoke’s Weekly Equity/Crypto Sentiment Survey – Bespoke
Bespoke takes a look at sentiment for Crypto and Stocks.
Health Care is the Sector to Watch – Potomac Fund Management
Dan Russo shares his weekly sector analysis.
Rock On – The Weekly Trend Podcast
In this podcast, David Zarling and Ian McMillan discuss several important technical developments.
New Trend Signal for a Former High Flyer – StockCharts
Arthur Hill explains why he thinks the Clean Energy ETF, $QCLN, is poised to move higher again.
Top Tweets
September 6 is the traditional peak in the yearly stock market cycle.
On average, the DJIA loses 2.25% from September 6 until October 29.
That's actually a lot in an average of 125 years.
— Eddy Elfenbein (@EddyElfenbein) September 6, 2021
Talk about a holiday weekend hangover.
The S&P 500 is on pace for its fifth straight decline on the day after Labor Day. https://t.co/erom6f6kmV pic.twitter.com/b2GWS5JKly
— Bespoke (@bespokeinvest) September 7, 2021
From last night's Thrasher Analytics letter….
Equity sentiment back to the highest level since September '20.
Average 25-day % Bullish for S&P 500 and Nasdaq 100 at 82.5%. $SPY $SPX $QQQ pic.twitter.com/2C23qqjqS6
— Andrew Thrasher, CMT (@AndrewThrasher) September 7, 2021
Impressive run continues … S&P 500 has now gone 215 days with > 75% of its members trading above their 200-day moving averages; well beyond prior high in 2013 and now closer to all-time record run in 2004 pic.twitter.com/NUca7OIAis
— Liz Ann Sonders (@LizAnnSonders) September 7, 2021
#NQ_F 1h
If NQ can break above the 15700 resistance, I'd expect another squeeze higher and a potential move to 16000 by the end of September. pic.twitter.com/WroVD44qTW
— Yuriy Matso (@yuriymatso) September 7, 2021
$AMZN setting up again after a full year of consolidation
Hard to ignore breakouts in stocks with a 1.8 trillion dollar market cap pic.twitter.com/Kyq741yPoS
— Grayson Roze (@GraysonRoze) September 7, 2021
$NFLX (Internet) Still another ~23% upside for Netflix? pic.twitter.com/u5O23ikxOH
— Pratyush Tulsian (@PrattyCharts) September 6, 2021
Look at you, China pic.twitter.com/EP32M252kx
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 7, 2021
The World ex-US looking ready to attack that 10+ year resistance level again $ACWX pic.twitter.com/hbuo8VvZ7n
— Grant Hawkridge (@granthawkridge) September 7, 2021
Parlez-vous Français ? $EWQ pic.twitter.com/Q386WK4zZ8
— Peter Brandt (@PeterLBrandt) September 7, 2021
Long T-bond ETF trend break $TLT pic.twitter.com/opfG1jUDTy
— Michael Kahn, CMT (@mnkahn) September 7, 2021
Looks like US yields want to go higher, and German yields are giving them a green light. pic.twitter.com/NS7Rxuw6eO
— Willie Delwiche (@WillieDelwiche) September 7, 2021
U.S. 10-year Treasury yields are nearing a key hurdle of ~1.4%…a breakout > the "cloud" would reverse the downtrend that began in Q2 in a macro shift #fairleadstrategies
For more detail, please consider a free trial: https://t.co/xpCvmDN7pP pic.twitter.com/Tns44Mu4EQ
— Katie Stockton, CMT (@StocktonKatie) September 7, 2021
wait, youre telling me they're selling near the same level they sold a ton last time? $ETHUSD pic.twitter.com/X58SZsns02
— BostonCharts (@bostonchaahhts) September 7, 2021
$ETH.X With a nice bounce off the 50SMA, #TRM still long $ETHUSD #ETH pic.twitter.com/c8Jh9efp7r
— Rolando Santos (@TKPTrader) September 7, 2021
This is all that former support from the Spring, before things broke down in May. There's a ton of memory here, which is the battle you're watching right now #bitcoin supply and demand dynamics are a real thing. you're witnessing that currently pic.twitter.com/vJKiVFVvVA
— J.C. Parets (@allstarcharts) September 7, 2021
Daily #Bitcoin on left
Buyers showed at YTD VWAP (orange)
VWAP from July low (green)5 Min chart on right
buyers defending VWAP ⚓️'d from the morning low pic.twitter.com/23yQRFbE8y— Brian Shannon, CMT (@alphatrends) September 7, 2021
Tom Brady, Busta Rhymes, and Steph Curry walk into a bar.
Bitcoin instantly drops 15%.
— Arun S. Chopra CFA CMT? (@FusionptCapital) September 7, 2021
You’re all caught up now. Thanks for reading!