Daily Chart Report ? Tuesday, July 27th, 2021
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Today’s Summary
Tuesday, July 27th, 2021
Indices: US Stocks closed lower in today’s session with the Dow slipping 86 points or 0.24%. The S&P 500 and Nasdaq fell 0.47% and 1.21%, respectively. The Russell 2000 dropped 1.13%.
Sectors: 5 of the 11 sectors closed higher. Utilities led, gaining 1.72%. Communications lagged, falling 1.19%.
Commodities: Crude Oil futures moved lower by 0.36% to $71.65 per barrel. Gold futures were unchanged and continue to trade at $1,799 per ounce.
Currencies: The US Dollar Index slipped 0.17%.
Interest Rates: The 10-year US Treasury yield fell to 1.243%.
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 Chris Verrone of Strategas Research (@verrone_chris). It’s a chart of the China Internet ETF, $KWEB, over the past 3.5 years. The top-weighted stocks in this popular ETF include Tencent, Alibaba, Meituan, Pinduoduo, and JD.com. As we highlighted yesterday, Chinese stocks have been getting absolutely whacked lately. At this point, $KWEB is more than 50% off its February highs. The bloodbath continued in today’s session, with $KWEB down as much as 8.4% at one point intraday. To be fair, it pared some of those losses to close down 4.6%. As we know, trying to catch a falling knife is never safe. However, Chris points out that today was the highest volume day in $KWEB’s history. Chirs adds that volume spikes like this one are often indicative of capitulation, where underwater investors throw in the towel and say “get me out at any price.” Could this be the final puke for $KWEB?
Quote of the Day
“A bull market will climb a wall of worry, while a bear market will slide a slippery slope of hope.”
– Old Wall Street Adage
Top Links
It’s Been More Than 90 Days Since Small-Cap Stocks Did This – SentimenTrader
Jason Goepfert points out that the Russell 2000 is flashing a bullish signal for the S&P 500.
Technology Rotating Into Leading Quadrant on RRG, But Will it Be Enough? – StockCharts
Julius de Kempenaer analyzes sector rotation.
A Big Week for Technology and Communication Services – Potomac Fund Management
Dan Russo takes a look at each of the 11 sectors of the S&P on a relative basis.
There is No Such Thing as a “Normal” Market Environment – A Wealth of Common Sense
Ben Carlson explains that stock prices, interest rates, inflation, and valuations are almost never at equilibrium.
Are Copper and Steel Prices Set For Major Breakouts? – See It Market
Chris Kimble points out that Copper and Steel are both testing long-term resistance levels.
Top Tweets
You’re all caught up now. Thanks for reading!