Daily Chart Report 📈 Monday, August 7, 2023

August 7, 2023

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Today’s Summary
Monday, August 7, 2023

Indices: Dow +1.16% | S&P 500 +0.90% | Nasdaq +0.87% | Russell 2000 +0.08%

Sectors: 10 of the 11 sectors closed higher. Communications led, rising +1.55%. Utilities was the only sector that closed lower, but just barely (-0.02%).

Commodities: Crude Oil futures fell -1.06% to $81.94 per barrel. Gold futures fell -0.31% to $1,970 per oz.

Currencies: The US Dollar Index ticked higher by just +0.07% to $102.08.

Crypto: Bitcoin gained +0.48% to $29,181. Ethereum was flat and continues to trade at $1,827.

Interest Rates: The US 10-year Treasury yield rose to 4.095%.

Here are the best charts, articles, and ideas shared on the web today!

Chart of the Day

$XLC Communications vs $XLK Tech

change in trend in the mega caps?

~ 48% of the $XLC ETF is $META & $GOOGL
~ 45% of the $XLK ETF is $AAPL & $MSFT pic.twitter.com/Ycl15wXJMn
— Christian Fromhertz 🇺🇸 (@cfromhertz) August 7, 2023

Today’s Chart of the Day was shared by Christian Fromhertz (@cfromhertz). Many have been calling for a rotation out of Mega-Caps in the second half. However, we’re seeing a rotation among Mega-Caps instead. The Communications sector ($XLC) is the new year-to-date leader after recently pulling ahead of Tech ($XLK). The ratio between the two sectors ($XLC/$XLK) is trying to reverse higher in favor of $XLC, and it’s above the 50, 100, and 200-day moving averages. The two largest Tech stocks ($AAPL & $MSFT) have come under pressure recently, while the two largest Communications stocks ($META & $GOOGL) have picked up the slack. The Mega Caps are passing the baton between one another to prevent exhaustion, allowing the whole team (the S&P 500) to run further.

Quote of the Day

“Trends, like horses, are easier to ride in the direction they are going.”

- John Naisbitt

Trendlines > Headlines

https://youtu.be/nnIFaEek5YA

The latest episode of Trendlines over Headlines is out!

This week, Sam Ro joins us to discuss markets, news, the economy, and more!

Sam is a prominent financial journalist and editor of the TKer, a newsletter geared toward long-term investors.

Prior to launching TKer, Sam worked at some of the largest financial media outlets, including Forbes, Business Insider, Yahoo Finance, Axios, and more!

Top Tweets

Daily Mkt Mood: Risk-On

1. Stocks up most since July 28
2. 4-day lose streak snapped
3. $VIX down
4. Bonds down
5. Yen down

Apple down though too and appears to be in full breakdown mode.

It’s hard to see mkt looking past $AAPL for long.

Seasonal pullback prob in effect too.
— Abigail Doolittle (@TheChartress) August 7, 2023

This failed breakout from the Tech sector is a problem pic.twitter.com/AfIeLDr018
— Austin Harrison, CFA, CMT (@meanstoatrend) August 7, 2023

$AAPL

-down 5 days in a row (first time this year)
-under 50dma (which is now rolling over)
-10% from ATH
-still below the uptrend line pic.twitter.com/MTkrXV6Vyd
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) August 7, 2023

Apple $AAPL coming right back in and failing to hold above the 2022 highs/support. pic.twitter.com/OcVYePpWbz
— Greg Rieben (@gregrieben) August 7, 2023

Interesting spread today in the two biggest Buffett positions. $BRK.B strong breakout to new highs.$AAPL pulling back with weekly support below. pic.twitter.com/gVzNPEDej4
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) August 7, 2023

It's a small-cap summer😎

Seriously tho, the Russell 2000 index of small-cap stocks is heading for its best summer vs. the S&P since 2016$SPX $RTY pic.twitter.com/ubSaXR91X7
— Callie Cox (@callieabost) August 8, 2023

Regionals once again trying. not a bad R/R spot on a relative basis. $KRE $SPX pic.twitter.com/Yfio9XwLNV
— Ian McMillan, CMT (@the_chart_life) August 7, 2023

Big, regional, and community banks are back above the 2020 lows and are reaching 4-month highs relative to the S&P 500 👀 pic.twitter.com/BBSbUA51zN
— Alfonso De Pablos, CMT (@AlfCharts) August 7, 2023

GLD big picture, via 7% box size. pic.twitter.com/jpEnkuUNGP
— Mark Ungewitter (@mark_ungewitter) August 7, 2023

Lot of eyes on Uranium here $URNM pic.twitter.com/V6F63ab3rm
— Jay R. Ligon (@TheeDisruptor) August 7, 2023

Did they turn off $BTC #Bitcoin? pic.twitter.com/5ABfGaIgJu
— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) August 7, 2023

You’re all caught up now. Thanks for reading!

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