Daily Chart Report 📈 Tuesday, August 6, 2024
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Today’s Summary
Tuesday, August 6, 2024
Indices: Russell 2000 +1.23% | S&P 500 +1.04% | Nasdaq +1.02% | Dow +0.76%
Sectors: All 11 sectors closed higher. Real Estate led, rising +2.21%. Health Care lagged but still rose +0.46%.
Commodities: Crude Oil futures rose +0.36% to $73.20 per barrel. Gold futures fell -0.52% to $2,432 per oz.
Currencies: The US Dollar Index rose +0.25% to $102.93.
Crypto: Bitcoin gained +3.77% to $56,053. Ethereum rose +1.77% to $2,463
Volatility: The Volatility Index dropped -28.16% to 27.70.
Interest Rates: The US 10-year Treasury yield bounced to 3.896%.
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 Macro Charts (@MacroCharts).
- While the $VIX exploded on Monday, a lesser-known volatility metric also blew out to extreme levels, signaling excessive fear.
- Macro Charts points out that the 1-month Call-Put Skew reached levels not seen since the pandemic on Monday. This basically means investors were willing to pay a hefty premium for insurance to protect against further downside.
- Investors have only been this desperate for protection a few other times in recent history, including the Covid Crash, Volmageddon, the Yuan Devaluation, and the Flash Crash.
The Takeaway: Investors were extremely desperate for insurance yesterday. Just like car insurance or health insurance, you don’t think you need it until something breaks, and at that point, it’s probably too late; the damage has been done.
Quote of the Day
“Trends are not endless. In fact, the greater the consensus belief in the persistence of a trend, the less likely it is to persist.”
– Arthur Zeikel
Top Links
6 Things to Watch for a Market Bottom - Barron's
John Roque highlights six things that would help the market establish a bottom.
10 Talking Points About the Recent Volatility - Carson Research
Ryan Detrick puts the recent volatility into perspective.
Where are the New Lows? - All Star Charts
JC Parets points out that there. hasn't been an expansion in New Lows despite the recent weakness.
QQQ: Critical Levels to Watch as Nasdaq Teeters on the Edge - StockCharts
Karl Montevirgen breaks down the Nasdaq 100 ($QQQ) after yesterday's sell-off