Daily Chart Report ? Tuesday, August 3rd, 2021
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Today’s Summary
Monday, August 2nd, 2021
Indices: US Stocks closed lower to start the week/month. The Dow slipped 97 points or 0.28%. The S&P 500 inched lower by just 0.18%, while the Nasdaq managed to close slightly positively (0.06%). The Russell 2000 underperformed, falling 0.48%.
Sectors: 4 of the 11 sectors closed higher. Utilities led, gaining 0.77%. Materials lagged, falling 1.21%.
Commodities: Crude Oil futures dropped 3.33% to $71.49 per barrel. Gold futures were unchanged and continue to trade around $1,817 per ounce.
Currencies: The US Dollar Index was unchanged.
Interest Rates: The 10-year US Treasury yield dropped to 1.177%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by TrendSpider (@TrendSpider). The chart shows the monthly win rate for the Volatility Index ($VIX) over the past five years. The stock market has been pretty calm so far in 2021. The S&P 500 hasn’t had a single pullback of 5% or more all year, which is unusual considering the average year sees about three. Furthermore, we haven’t had a correction of 10% or more on a closing basis since the bull market began over a year ago. However, things could get turbulent over the coming weeks if recent history is any guide. While five years is a very small sample size, the VIX has closed higher every August since 2016. On a brighter note, the VIX has closed lower every September since 2016. For seasonality tools like the one seen here, be sure to check out TrendSpider. Use the code TCR40 to save 40% at signup!
Quote of the Day
“In the long history of humankind (and animal kind too), those who learned to collaborate and improvise most effectively have prevailed.”
– Charles Darwin
Top Links
Seasonality Heading into Weak Zone, deGraaf Says – CNBC
In this clip, Jeff deGraaf of Renaissance Macro Research discusses stock market seasonality.
While Tough for Equities, August Has Been Good for Fixed Income – LPL Financial Research
The team at LPL Financial Research takes a look at August seasonality in the fixed income markets.
Cyclical Sectors are Being Put to the Test – Potomac Fund Management
Dan Russo analyzes each of the 11 sectors on both an absolute and relative basis.
Commodities Attempting to Break Above 6-Year Price Resistance! – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the Commodities ETF, $DBC.
Bitcoin Is On The Verge Of A 34% Rally As Technicals Signal Risk-On Mode For Cryptocurrencies, Fairlead’s Katie Stockton Says – Markets Insider
Katie Stockton shares her technical outlook on Bitcoin.
Top Tweets
You’re all caught up now. Thanks for reading!