Daily Chart Report ? Monday, August 31st, 2020
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Today’s Summary
Monday, August 31st, 2020
Indices: US Stocks were mostly lower in today’s session, with the Dow Jones Industrial Average falling 224 points or 0.78%. The S&P 500 snapped a seven-day winning streak slipping 0.22%. The Nasdaq rose 0.68% to a fresh all-time high. Small-Caps underperformed, with the Russell 2000 dropping 1.04%.
Sectors: Technology led, gaining 0.32%. Energy lagged, falling 2.17%.
Commodities: Crude Oil futures fell 0.84% to $42.61 per barrel. Gold futures inched higher by 0.19% to $1,979 per ounce.
Currencies: The US Dollar Index slipped 0.16% to its lowest level in over 2 years.
Interest Rates: The US 10-year Treasury yield fell to 0.705%.
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 Steve Strazza (@sstrazza). Throughout the recovery from the March lows, many have been quick to get bearish at first sight of momentum divergences. A bearish momentum divergence is formed when price and RSI fail to make new highs together. Steve uses this chart of the Tech Sector ETF, $XLK, to emphasize that these are simply potential divergences until they’re confirmed by price closing below the former highs. In February, a potential divergence formed and was later confirmed when price closed below the January highs. A few weeks ago, a similar divergence formed, except this time, price failed to confirm that divergence by continuing higher. Momentum divergences are an incredibly useful tool and they’re always worth being aware of. However, it’s important to be patient and wait for price to confirm a divergence before getting aggressively bearish.
Quote of the Day
“You have to know what you are, and not try to be what you’re not. If you are a day trader, day trade. If you are an investor, then be an investor. It’s like a comedian who gets up onstage and starts singing. What’s he singing for? He’s a comedian.”
– Steven Cohen
Top Links
Historic August Opens Door to Worst Month of The Year – LPL Financial Research
The team at LPL Financial Research examines the outlook for stocks heading into what has historically been a weak month.
Art Cashin on the Short-Term Effects of Stock Splits – The Reformed Broker
Legendary NYSE floor trader, Art Cashin weighs-in on the recent Tesla and Apple stock splits.
The World is Breaking Out – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight some of the strongest stocks, trends, and themes across the markets.
Woah There Horsey – Jotting on Charts
Grant Hawkridge points out a few potential warning signs for stocks.
The Trend is Your Friend – The Weekly Trend
In this podcast, Ian McMillan and David Zarling discuss the most important technical developments to be aware of this week.
Top Tweets
You’re all caught up now. Thanks for reading!