Daily Chart Report ? Wednesday, July 15th, 2020
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Today’s Summary
Wednesday, July 15th, 2020
Indices: The Dow Jones Industrial Average closed higher for the fourth day in a row, advancing 228 points or 0.85%. The S&P 500 and Nasdaq rose 0.91% and 0.59%, respectively. Small-Caps significantly outperformed, with the Russell 2000 jumping 3.50%.
Sectors: 10 of the 11 sectors closed higher. Industrials led, gaining 2.55%. Utilities was the only sector to close lower, slipping 0.39%.
Commodities: Crude Oil futures moved higher by 2.26% to $41.20 per barrel. Gold futures were flat and continue to trade at $1,813 per ounce.
Currencies: The US Dollar Index slipped 0.15%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.630%.
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 with us by Ian McMillan (@the_chart_life). The chart shows the S&P 500 over the past five months, along with four key ratios; Nasdaq/Russell 2000, Growth/Value, Mega-Cap Growth/Small-Cap Value, and Tech/Financials. In a comment to The Chart Report, Ian told us, "The numerator in all four ratios (Nasdaq, Growth, Mega-Cap Growth, and Tech) are all correlated to each other, and so are the denominators (Russell 2000, Value, Small-Cap Value, and Financials) So when the relative trend changes for one, you usually see it in all the relationships." Notice that in recent months, when all four ratios are trending lower, the S&P 500 has risen. On the other hand, when all four ratios are trending higher, the S&P 500 has stalled out. In recent days, all four ratios have begun to trend lower. Will weakness in these relative trends be a bullish tailwind for S&P 500 similar to what we saw in mid-May?
Quote of the Day
“A prudent speculator never argues with the tape. Markets are never wrong, opinions often are.”
– Jesse Livermore
Top Links
Rotation, Rotation, Rotation - All Star Charts
Tom Bruni of All Star Charts takes a look at ongoing sector rotation into areas like Financials, Energy, and Industrials.
STOXX 50 Breaking Out - Bespoke
Bespoke points out that the Euro STOXX 50 ETF, $FEZ, is breaking out.
Using the Swiss Franc As A Timing Tool - StockCharts.com
In this video, Chris Kimble examines the relationship between Gold and the Swiss Franc.
The Power of Bull Market Thrusts - Jay on the Markets
Here's a good read about bull market thrusts from Jay Kaeppel.
JC Parets - New All-Time Highs. Zoom, Docusign, Biotech, Social Media & Internet Retailers - OPTO Trading Intelligence
In this podcast, JC Parets explains why he's bullish on stocks and offers some insight into his process.