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Today’s Summary
Tuesday, September 8th, 2020
Indices: US Stocks kicked off the week on a sour note with the Dow Jones Industrial Average dropping 632 points or 2.25%. The S&P 500 and Nasdaq closed lower by 2.78% and 4.11%, respectively. The Russell 2000 outperformed but still fell 2.00%.
Sectors: All 11 sectors closed lower. Utilities led, but still slipped 0.56%. Tech lagged, dropping 4.52%.
Commodities: Crude Oil futures tumbled 7.57% to $36.76 per barrel. Gold futures rose 0.46% to $1,943 per ounce.
Currencies: The US Dollar Index moved higher for the sixth straight day, gaining 0.50%.
Interest Rates: The US 10-year Treasury yield fell to 0.677%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Dollar downtrend break after flashing a divergence $UUP $DX_F $USDX pic.twitter.com/0r5NxIy0af
— Aaron (@ATMcharts) September 8, 2020
Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). It’s a daily candlestick chart of the US Dollar ETF, $UUP, over the past year. Aaron points out that after five months of trending lower, the US Dollar is setting up for a potential mean reversion move higher. A bullish momentum divergence formed throughout August when price made a series of lower lows while RSI made a series of higher lows. Price is attempting to confirm that divergence by closing above the August highs. We’ll be watching this development closely over the next few weeks. A counter-trend rally in the US Dollar could act as a short-term headwind for several asset classes, including Large-cap multinational stocks, Commodities, and Emerging Markets. In a comment to The Chart Report, Aaron added, “Normally we’d want to use futures over ETFs when available, but sometimes the ETFs offer little hints like UUP’s March bottoming tail.”
Quote of the Day
“An idiot with a plan can beat a genius without a plan.”
– Warren Buffett
Top Links
In this clip, Ari Wald of Oppenheimer explains why he thinks the recent weakness is a buying opportunity for long-term investors.
The Big Guns at 50 – StockCharts.com
Greg Schnell points out that several popular stocks are currently testing their 50-day moving averages.
Here’s Why the Markets are Moving – Howard Lindzon
In this video, Howard Lindzon, Jonathan Krinsky, and Don Nitti discuss the current market environment.
The 96-Week Downtrend – The Reformed Broker
Josh Brown weighs-in on the sustained weakness in Energy stocks.
To Rotate or Not To Rotate? – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the major technical developments to be aware of this week.
Top Tweets
#Seasonality pic.twitter.com/E15SVLHHOn
— Nautilus Research (@NautilusCap) September 8, 2020
$QQQ closes right on 50 DMA. It's been a long time since we've been here $SPY $DIA $IWM pic.twitter.com/r33oxmB2se
— Top Gun Financial (@TopGunFP) September 8, 2020
THE HORROR: $QQQ is now down to +27% YTD (3x its ann avg return) during a pandemic and what most consider to be the all around worst year in recent memory. pic.twitter.com/nC18sc3SjR
— Eric Balchunas (@EricBalchunas) September 8, 2020
Worth noting that even with last week's pullback and this morning's continuation, the relative strength line on technology still hasn't broken any trendlines using recent lows. Conclusion: still a short-term pullback until these support levels are violated. $XLK pic.twitter.com/xdtvA7iNFW
— David Keller, CMT (@DKellerCMT) September 8, 2020
QQQ/GLD$QQQ $GLD $SPX pic.twitter.com/1Q7DXg8n8F
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) September 8, 2020
Crude oil is accelerating into its slide. This more growth-sensitive risk asset is registering its biggest single-day drop since Jun 11 and on a four-day slide pic.twitter.com/7w33guwYCC
— John Kicklighter (@JohnKicklighter) September 8, 2020
The drop in #oil looking pretty textbook right now. Rally higher after March's capitulation stopped right at 61.8% Fibonacci retrace ~$43.25 while ascending 50-day MA flat-lines, unable to rise above descending 200-day MA. Now precipitously falling as RSI/MACD rolls hard $CL_F pic.twitter.com/YRrqrm1ip4
— Michael McKerr (@MikeMcKerr_TDA) September 8, 2020
I mention to other charting platform developers all the time…. Add SHORT INTEREST as a technical indicator!
One of the few who does now is @KoyfinCharts $WKHS daily
supply and demand tool pic.twitter.com/GBdvqqs2QA— Brian Shannon, CMT (@alphatrends) September 8, 2020
Down 13%, this is now the worst 3 days for $AAPL since 2008 pic.twitter.com/YBhqhQpaid
— Sarah Ponczek (@SarahPonczek) September 8, 2020
$TSLA had its worst day on record. Silver lining? Stock is still up 294% year to date and it held above its 50-day moving average. pic.twitter.com/2IpQNCmwLL
— Fred Imbert (@foimbert) September 8, 2020