Daily Chart Report ? Tuesday, August 25th, 2020
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Today’s Summary
Tuesday, August 25th, 2020
Indices: US Stocks were mixed in today's session with the Dow Jones Industrial Average slipping 60 points or 0.21%. The S&P 500 and Nasdaq moved higher by 0.36% and 0.76%, respectively. Small-Caps also moved higher, with the Russell 2000 inching up 0.17%.
Sectors: Communications led, rising 0.94%. Energy lagged, falling 1.40%.
Commodities: Crude Oil futures gained 1.71% to $43.35 per barrel. Gold futures inched lower by 0.22% to $1,935 per ounce.
Currencies: The US Dollar Index fell 0.30%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.688%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Alex Barrow (@MacroOps). It's a chart of the US Dollar Index ($DXY) over the past 9-years along with the Citi Pain Index below. This short-term indicator measures crowded market conditions in the US Dollar Index. Alex points out that the current reading of -40 suggests that the US Dollar short has become a crowded trade. An unwind of this large short positioning could fuel a sharp mean-reversion rally in the near-term, which would likely provide a headwind for a number of asset classes including, Stocks, Precious Metals, and Emerging Markets. For more on how extreme US Dollar sentiment and positioning have become, check out Alex's full blog post - iS tHE dOLlaR abOUt to cRaSH?
Quote of the Day
“Common sense is genius dressed in its working clothes.”
– Ralph Waldo Emerson
Top Links
iS tHE dOLlaR abOUt to cRaSH - Macro Ops
Going along with today's Chart of the Day, Alex Barrow explains why he thinks the pain trade is higher for the US Dollar in the near-term.
Welcome, New Dow Components! Amgen, Honeywell & Salesforce - All Star Charts
JC Parets weighs-in on the recent changes being made to the Dow Jones Industrial Average.
Weak Breadth in Strong Months - Bespoke
Bespoke points out that August is on pace to be the second month in a row where the S&P 500 was up at least 4% while breadth was negative on half of all trading days.
Chart Corner 8/24/2020 - Pivot Analytics
Pivot Analytics highlights several noteworthy chart setups.
Midweek Stock Market Recap and Technical Analysis - The Trade Risk
In this video, Evan Medieros analyzes the recent price action of the major sectors and indices.
Top Tweets