Daily Chart Report ? Monday, July 27th, 2020
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Today’s Summary
Monday, July 27th, 2020
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 115 points or 0.43%. The S&P 500 rose 0.74%, while the Nasdaq outperformed, gaining 1.67%. The Russell 2000 closed higher by 1.16%.
Sectors: 9 of the 11 sectors closed higher. Tech led, gaining 1.58%. Utilities lagged, falling 1.21%.
Commodities: Crude Oil futures moved higher by 0.75% to $41.60 per barrel. Gold futures jumped 1.77% to an all-time high of $1,931 per ounce.
Currencies: The US Dollar Index closed lower for the seventh day in a row, dropping 0.74%.
Interest Rates: The US 10-year Treasury yield rose to 0.618%.
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 Ed Bradford (@Fullcarry). Well, it finally happened. Gold hit an all-time high today for the first time in nearly 9-years. The yellow metal bottomed out in 2015 not long after Wall Street Journal columnist Jason Zweig famously called Gold a ‘pet rock.’ Ironically, this unsexy ‘pet rock’ has outperformed the S&P 500 since then. It has essentially become a momentum trade. As of today, Gold has booked a 7-day winning streak and a 7-week winning streak. So, is Gold too far extended in the near-term? Or, do we buy the long-term breakout? Ed’s chart shows Gold in relation to its 200-day moving average over the past 20-years. It’s currently about 17.5% above it’s 200-day moving average. While 17.5% is relatively extended, it’s not quite a historical extreme. As Ed points out, 25-30% would be considered an extreme reading. The current winning streak can’t last forever, but history shows us that price could continue to stretch higher before mean reversion begins to work its magic.
Quote of the Day
“In my experience, once an asset class or commodity takes out a multi-decade high, it’s probably a mistake to think you’re smarter than the crowd and fade it.”
– Josh Brown
Top Links
Sad Old Man Rocks Making New High – The Reformed Broker
Here’s a good read from Josh Brown, in which he weighs-in on the breakout in Gold.
That’s Not a Bubble, This is a Bubble – LPL Financial Research
The team at LPL Financial Research answers the question; are Growth stocks in a bubble?
Get Ready for Big Tech Earnings – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight the most dominant stocks, trends, and themes across the market.
Silver Rally: Next Stop $27? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Silver.
The Trading Pit 07/26/20 – Trend Spider
Here’s TrendSpider’s weekly video, featuring Editor of The Chart Report, Patrick Dunuwila.