Daily Chart Report ? Wednesday, August 5th, 2020
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Today’s Summary
Wednesday, August 5th, 2020
Indices: US Stocks closed higher in today's session with the Dow Jones Industrial Average gaining 373 points or 1.39%. The S&P 500 and Nasdaq rose 0.64% and 0.52%, respectively. Small-Caps outperformed for the third straight day with the Russell 2000 jumping 1.91%.
Sectors: Industrials led, gaining 1.91%. Utilities lagged, falling 1.28%.
Commodities: Crude Oil futures rose 1.18% to $42.19 per barrel. Gold futures continued higher by 1.40% to a record high of $2,049 per ounce.
Currencies: The US Dollar Index fell 0.48%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.554%.
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 Drew Wells (@DrewTheCharts). There’s been a lot of concern over market breadth lately. Many warn that the S&P 500 has become saturated to a handful of Mega-Cap stocks, namely, $AAPL, $MSFT, $AMZN, $FB, $GOOG. Drew offers a somewhat contrarian take on breadth here. He points out that equal-weight S&P 500 ($RSP) is slightly outperforming cap-weight S&P 500 ($SPY) since the March 23rd low. Equal-weight ($RSP) is up 51.83%, while cap-weight ($SPY) is up 49.50%. To be fair, equal-weight is still below its June high. However, the fact that equal-weight has continuously led off of a major cyclical low is constructive. It suggests that breadth and Mega-Cap leadership are not as unhealthy as some think. Further outperformance from equal-weight would be bullish, as it would be evidence of broadening participation.
Quote of the Day
“An expert is someone who knows some of the worst mistakes that can be made in his subject, and how to avoid them.”
– Werner Heisenberg
Top Links
Why Markets Don't Seem to Care if the Economy Stinks - Bloomberg
Here's a great read from Barry Ritholtz. He explains why the S&P 500 continues to march higher despite a grim economic backdrop.
Todd Sohn On Dropping Dollar's Impact on Markets - TD Ameritrade Network
In this clip, Todd Sohn of Strategas Research shares his thoughts on the US Dollar, Home Builders, and Semiconductors.
Metals and Miners - The Rotation Report
Aaron Jackson takes a look at Precious, Rare, and Industrial Metals.
Is the US Dollar Nearing Bottom? Or Is It Different This Time? - Kimble Charting Solutions
Chris Kimble points out that the US Dollar is testing a long-term trendline while sentiment is extremely bearish.
New Lows in Rates - Buy Bonds - All Star Charts
Tom Bruni of All Star Charts discusses the drop in Treasury yields.
Top Tweets