Daily Chart Report ? Wednesday, July 14th, 2021
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Today’s Summary
Wednesday, July 14th, 2021
Indices: US Stocks were a mixed bag in today’s session. The Dow was pretty flat, inching up just 44 points or 0.13%. The S&P 500 was also flat (0.12%), while the Nasdaq slipped 0.22%. The Russell 2000 underperformed again, dropping 1.63%.
Sectors: 4 of the 11 sectors closed higher. Consumer Staples led, rising 0.89%. Energy lagged, dropping 2.98%.
Commodities: Crude Oil futures dropped 3.08% to $72.93 per barrel. Gold futures moved higher by 1.03% to $1,829 per ounce.
Currencies: The US Dollar Index fell 0.44%.
Interest Rates: The 10-year US Treasury yield dropped to 1.349%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by Bespoke. A handful of Mega-Cap stocks have been responsible for the S&P 500’s most recent leg higher. One way to view this Mega-Cap leadership is by comparing the equal-weight S&P 500 (left), to the traditional cap-weighted S&P 500 (right). As you can see, the equal-weight S&P 500 has made zero progress over the past two months, while the cap-weighted S&P 500 has climbed to record highs. Keep in mind, the five largest stocks in the S&P 500 ($AAPL, $MSFT, $AMZN, $GOOGL, and $FB) make up more than 20% of the cap-weighted index. In other words, the top 1% determines 20% of the average. This narrow leadership has raised some concerns, but it’s important to note that the equal-weight S&P 500 is still outperforming the S&P 500 YTD. So, you could also view this as the type of healthy rotation that bull markets thrive off of. Click here for the full note by Bespoke.
Quote of the Day
“It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.”
– William O’Neil
Top Links
S&P 500 Equalweight Lagging Badly – Bespoke
Bespoke points out that the equal-weight S&P 500 has dramatically underperformed the S&P 500 recently.
More Fear Than Greed but Stocks Trade to Record Highs – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
The Most Important Index in the World has Doubled – Now What? -SentimenTrader
Jason Goepfert examines what has historically happened after the S&P 500 gains 100% from a major low.
Canary in the Coalmine? – LPL Financial Research
The team at LPL Financial Research points out that credit markets are behaving well despite falling Treasury yields.
Australian Dollar Breakout Could Send Gold to $3,000 – See It Market
Chris Kimble explains that the Aussie Dollar could provide clues for Gold’s next move.
Top Tweets
You’re all caught up now. Thanks for reading!