Daily Chart Report ? Tuesday, August 11th, 2020
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Today’s Summary
Tuesday, August 11th, 2020
Indices: US Stocks closed lower in today's session. The Dow Jones Industrial Average slipped 105 points or 0.38%. The S&P 500 snapped a seven-day winning streak, falling 0.80%. The Nasdaq underperformed, dropping 1.69%. The Russell 2000 moved lower by 0.60%.
Sectors: Financials (1.16%) and Industrials (0.53%) were the only sectors to close higher. Utilities lagged, falling 2.16%.
Commodities: Crude Oil futures slipped 0.79% to $41.61 per barrel. Gold futures had their worst day since 2013, tumbling 5.67% to $1,921 per ounce.
Currencies: The US Dollar Index inched up 0.04%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.644%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). The chart shows the Volatility Index ($VIX), and the Volatility of the Volatility Index ($VVIX). Andrew points out that $VVIX failed to make a new low along with the $VIX recently. The last time Andrew pointed out a divergence between these two was in mid-February, just days before the crash began. This divergence doesn't necessarily mean that we're due for another epic crash. But, it is a sign that stocks could experience some turbulence in the near-term. In a comment to The Chart Report, Andrew said, "It's worth paying attention anytime $VIX and $VVIX diverge like this. Not a great look for volatility, when you pair this divergence with the fact that sentiment on the $VIX is only 8% bullish right now." Few analysts understand volatility as well as Andrew. In fact, he won the 2017 Charles H. Dow Award for his research paper titled, "Forecasting a Volatility Tsunami." Check it out if you're interested in this topic.
Quote of the Day
"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function."
– F. Scott Fitzgerald
Top Links
Stock Market Rotation Emerges Amid Key Price Reversals - See It Market
Michele Schneider takes a look at the recent rotation going on in the market.
Stock Market Video Analysis 8/11/20 - AlphaTrends.net
In this video, Brian Shannon explains why caution is warranted in the near-term and highlights some specific risk levels to keep an eye.
Doc Copper Bear Market Resistance Kiss in Play! - Kimble Charting Solution
Chris Kimble points out that Copper is testing a key inflection point.
Time for a Dollar Rebound? - Forbes
Forbes contributor and technical analyst, Tom Aspray discusses a potential rebound in the US Dollar.
Emerging Industrials as Commodities Collapse - The Final Bar
In this episode of the Final Bar, host David Keller reviews recent price action, and his guest Larry Tentarelli outlines two trade ideas - $CAT and $FCX.
Top Tweets
Small caps are up ~12% over the past month, trouncing tech's ~1.9% gain pic.twitter.com/skCtP0D8SA
— Katherine Greifeld (@kgreifeld) August 11, 2020