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Today’s Summary
Tuesday, September 15th, 2020
Indices: US Stocks continued higher in today’s session. The Dow Jones Industrial Average was flat, changing just 2 points or 0.01%. The S&P 500 and Nasdaq rose 0.52% and 1.21%, respectively. The Russell 2000 was also flat, changing just 0.08%.
Sectors: Communications led, gaining 1.78%. Financials lagged, falling 1.36%.
Commodities: Crude Oil futures moved higher by 2.74% to $38.28 per barrel. Gold futures slipped 0.16% to $1,962 per ounce.
Currencies: The US Dollar Index was flat, changing just 0.02%.
Interest Rates: The US 10-year Treasury yield inched higher to 0.682%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
In my opinion, this is the most important chart to watch this next several days (and perhaps weeks).
Above the Feb 2020 highs and I think the evidence leans bullish.
Below it = extreme caution in the short-term.$SPX pic.twitter.com/dbKlykbm0X
— Adam D. Koós, CFP®, CMT (@AdamKoos) September 15, 2020
Today’s Chart of the Day was shared on Twitter by Adam Koos (@AdamKoos). It’s a daily candlestick chart of the S&P 500 over the past year. The S&P 500 has been walking on a tightrope over the past week as it retests the February highs. We’ve closed slightly above and below this crucial level in recent days, without any meaningful follow-through. It’s fairly common to see price throwback to a breakout level like this before eventually resuming its uptrend. However, Adam explains that we want to continue to monitor the ongoing battle at this key level in the near-term. In a comment to The Chart Report, Adam said, “It’s easy to overanalyze things right now, but to me, it’s as simple as this – if SPX is above the February highs, the risk is to the upside. If SPX is below the February highs, the risk is to the downside.”
Quote of the Day
“It takes many good deeds to build a good reputation and only one bad one to lose it.”
– Benjamin Franklin
Top Links
Chips and Trains – All Star Charts
Steve Strazza explains that Semiconductor and Transportation stocks are signaling further gains for the broader market.
There’s a Global Recovery Taking Place – Yahoo Finance
In this clip, Ryan Detrick of LPL Financial highlights some noteworthy positive developments that many are overlooking.
30-Year Bond Bull Market Coming to an End? – Kimble Charting Solutions
Chris Kimble points out that Treasury Bonds could be in the process of forming a multi-decade top.
Gold Miners ETF (GDX) Breakout Triggers Buy Signal – See It Market
Guy Cerundolo breaks down a chart of the Gold Miners ETF, $GDX.
XLC and XLK Continue to Lose Relative Strength, Which is Picked Up by the Rest of the Market – StockCharts.com
Julius de Kempenaer examines recent sector rotation trends.
Top Tweets
Nasdaq 100 rises more than 1% for a 2nd straight day.
VXN also rises.
*Gasp*
— Sarah Ponczek (@SarahPonczek) September 15, 2020
$SPX Advance/Decline still above Feb highs. pic.twitter.com/7HhVGeVcuC
— The Chartist (@thechartist) September 15, 2020
$IYT transports could have a very important close today. pic.twitter.com/Lmlwwny1VQ
— Jason (@JasonPerz138) September 15, 2020
The Energy sector's S&P 500 weighting is getting closer and closer to a 1-handle. Down to 2.19%. $XLE https://t.co/H4p1RcpfIn pic.twitter.com/FslyhsV7x1
— Bespoke (@bespokeinvest) September 15, 2020
The largest weight in the $XLB at 17%. $LIN. Who had this on their dance card? $XLB materials ETF making an all time high today. pic.twitter.com/PLobsqBbV0
— Frances Horodelski (@fhoro) September 15, 2020
$XLK vs $SPY…This is the big rotation out of tech we are all hearing about! pic.twitter.com/pBTkLmC3OZ
— Dan Russo, CMT (@DanRusso_CMT) September 15, 2020
Either these textbook consolidations in the miners resolve to the upside…or they break down instead and we've got a very big shift in the market environment.
Judging by the response to yesterday's Gold and Silver chart, I'm gonna guess y'all are bullish.$GDX $GDX $SIL $SILJ pic.twitter.com/mRSZNXq7tC
— Tom Bruni, CMT (@BruniCharting) September 15, 2020
Bitcoin trying to hold above its Feb. highs as momentum rolls off 'oversold' levels. #btc #bitcoin $BTC pic.twitter.com/Ge1ha4CY9t
— Andrew Thrasher, CMT (@AndrewThrasher) September 15, 2020
Gold & Bitcoin have been pretty much in lockstep with one another since the March equity index lows. Do you think it's because of the Fed printing money, other international currency concerns, or another reason? Go! $BTCUSD $GC_F $GLD $DXY pic.twitter.com/HDpSg7yISM
— Matthew Timpane, CMT (@mtimpane) September 15, 2020
$TSLA is +35% since the 50-sma test last week, after a 34% drawdown and +63% from the August lows – as volatile as they get. pic.twitter.com/K2d2k9W3uL
— Larry Tentarelli, Blue Chip Daily (@LMT978) September 15, 2020