Daily Chart Report ๐ Monday, August 7, 2023
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Todayโs 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 $1,827.
Interest Rates: The US 10-year Treasury yield rose to 4.095%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Todayโs Chart of the Day was shared by Christian Fromhertz (@cfromhertz). Many have been calling for a rotation out of Mega-Caps in the second half. However, weโre seeing a rotation among Mega-Caps instead. The Communications sector ($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 $XLC, and itโs above the 50, 100, and 200-day moving averages. The two largest Tech stocks ($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
โTrends, like horses, are easier to ride in the direction they are going.โ
- 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 Links
If Not Tech, Then What? - All Star Charts
JC Parets examines the outlook for Tech.
Growth Stocks Begin Down a Slipery Slope - StockCharts.com
David Keller highlights some potential headwinds for stocks in the near term.
Long End Historically Oversold - Bespoke
Bespoke looks at the recent action in Treasury yields.
Some Unsettling Stock Market Charts That May Help You Stay Grounded ๐ง๐ป - TKer
Sam Ro puts the recent weakness into historical context.