Daily Chart Report ? Monday, July 6th, 2020
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Today’s Summary
Monday, July 6th, 2020
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 460 points or 1.78%. The S&P 500 and Nasdaq gained 1.59% and 2.21%, respectively. Small-Caps underperformed with the Russell 2000 rising 0.77%.
Sectors: 10 of the 11 sectors moved higher. Consumer Discretionary led the way, gaining 2.39%. Utilities was the only sector to close lower, falling 1.23%.
Commodities: Crude Oil futures were little changed, slipping just 0.15% to $40.59 per barrel. Gold futures rose 0.22% to $1,794.
Currencies: The US Dollar Index dropped 0.39%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.680%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Macro Charts (@MacroCharts). It's a chart of the Shanghai Composite over the past thirty years. Chinese stocks have been gaining some serious momentum recently. Macro Charts points out that the daily Relative Strength Index (RSI) printed one of its highest readings of all-time today. As you can see by the green dots, extreme momentum spikes like this have preceded sharp multi-year rallies. In a separate comment, Andrew Thrasher gave us a great way to think about this chart; "Elevated momentum is a good thing. Would you pick the race car speeding up or slowing down to win a race?" Could Chinese Stocks and the Shanghai Composite be in the early innings of another monster rally, similar to what we saw in 2006-2007 and 2015?
Quote of the Day
“A momentum investing strategy is the rather insane proposition that you can buy a portfolio of what’s been going up for the last 6 to 12 months, sell a portfolio of what’s been going down for the last 6 to 12 months, and you beat the market. Unfortunately for the case of sanity, that seems to be true.”
– Cliff Asness (Founder of AQR)
Top Links
Chinese Stocks Break Out - The Reformed Broker
Josh Brown of Ritholz Wealth Management weighs-in on the big story of the day - the breakout in Chinese equities.
Fourth of July, APAC Stocks Fly - MurphyCharts
Sick of reading about Chinese Stocks yet?... Too bad, here's another good read on the topic from Shane Murphy.
Tech and Biotech Continue to Lead - Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight some of the strongest stocks and trends across the markets.
My Monthly Notebook - Jotting on Charts
Grant Hawkridge shares his in-depth analysis of the current market environment.
Another New High for Semi's - Bespoke
Bespoke examines the ongoing breakout in Semiconductor stocks (SOX).