Daily Chart Report 📈 Monday, August 28, 2023
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Today’s Summary
Monday, August 28, 2023
Indices: Russell 2000 +0.83% | Nasdaq +0.74% |S&P 500 +0.63% | Dow +0.62%
Sectors: 10 of the 11 sectors closed higher. Communications led, gaining +1.22%. Utilities lagged, closing flat (-0.02%).
Commodities: Crude Oil futures rose +0.34% to $80.10 per barrel. Gold futures gained +0.36% to $1,947 per oz.
Currencies: The US Dollar Index fell -0.20% to $103.98.
Crypto: Bitcoin was flat at $26,103. Ethereum fell -0.34% to $1,652.
Interest Rates: The US 10-year Treasury yield fell to 4.208%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). Chinese stocks are starting to appeal to contrarians as telltale signs of extreme pessimism emerge. This week's cover of The Economist features a caricature of Xi Jinping riding a half-snail half-dragon with the caption: "Xi's Failing Model: Why he won't fix China's economy." It's not just The Economist showing hate for Chinese equities. Jason Goepfert of SentimenTrader pointed out today that the number of negative news articles on China is at a record high. Despite the bearish narrative, Alfonso shows that the Chinese Internet ETF ($KWEB) has reclaimed support at $26.50, and has formed an inverted head & shoulder pattern. Contrarians aren't necessarily betting Xi will save the day, but rather, they're betting that the worst has already been priced in for Chinese equities.
Quote of the Day
“There's no such thing as a good or bad idea in the investment world. It's a good idea at a price; it's a bad idea at a price.”
– Howard Marks
Trendlines > Headlines
https://youtu.be/iRel6qR_AoY
Check out the latest episode of Trendlines over Headlines!
This week, Market Wizard John Netto joins us to discuss the current market environment and his approach to trading.
Top Links
No Defense At All - All Star Charts
JC Parets points out that we haven’t seen a flight to safety amid the recent pullback.
Energy Remains the Cheapest Sector in the Market: Renaissance Macro’s Jeff DeGraaf - CNBC
Jeff deGraaf shares his outlook on the broader market, the Energy sector, and Chinese equities.
China’s Shanghai Composite Stock Index Nearing “Decision Time”! - Kimble Charting Solutions
Chris Kimble points out that the Shanghai Composite is reaching the apex of a triangle pattern.
Necklines - The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most significant technical developments.
Top Tweets
Consensus is that these all break to the upside. pic.twitter.com/unjMezninr
— Dan Russo, CMT (@DanRusso_CMT) August 28, 2023