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Today’s Summary
Wednesday, July 8th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 177 points or 0.68%. The S&P 500 and Nasdaq rose 0.78% and 1.44%, respectively. The Russell 2000 moved higher by 0.81%.
Sectors: Technology led, gaining 1.63%. Materials lagged, falling 1.42%.
Commodities: Crude Oil futures rose 0.69% to $40.90 per barrel. Gold futures moved higher by 0.59% to $1,821 – the highest level in over seven years.
Currencies: The US Dollar Index dropped 0.51%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.669%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Financials on the verge of another relative strength low. Look no further than 10yr yields. Never before has the fate of financials been tied more closely to yields. pic.twitter.com/gH1J9jnXgi
— RenMac: Renaissance Macro Research (@RenMacLLC) July 8, 2020
Today’s Chart of the Day was shared on Twitter by Renaissance Macro Research (@RenMacLLC). It’s a chart of the Financial sector over the past three years. On an absolute basis, price is currently testing its 50-day moving average after failing to breach the 200-day last month. On a relative basis, the sector is breaking down and nearing record lows vs. the broader market (middle pane). This is a crucial area of the market to focus on right now. Bulls need Financials to get their act together, by improving on both an absolute and relative basis in the near-term.
Quote of the Day
“What we know is a drop. What we don’t know is an ocean.”
– Issac Newton
Top Links
The Stock Market is About to Flash A Widely Followed Technical Buy Signal, Suggesting More Upside Ahead – Business Insider
This article from Business Insider takes a look at the infamous Golden Cross indicator.
China Stock Market Surge — You Ain’t Seen Nothin’ Yet – Bespoke
Bespoke explains that sharp rallies in China’s Shanghai Composite are more common and massive than you might think.
Granny Retail Hangs Tough – StockCharts.com
Michele Schneider breaks down a chart of the Retail ETF, $XRT.
Stock Market Video Analysis July 8, 2020 – AlphaTrends.Net
Brian Shanon lays out some key levels to focus on in the remainder of the week.
Gold is Grinding Higher, But a Continuation of the Trend Isn’t Guaranteed – DeCarley Trading
In this video, Carley Garner outlines her thoughts on the breakout in Gold and how to play it using options.
Top Tweets
A tale of a top-heavy market.
Today was only the second trading day since April 2009 in which the S&P 500 climbed 0.75% or more, but fewer than 300 index members advanced.
— Callie Cox (@callieabost) July 8, 2020
A concern of mine is when $SPX rallies w/o support of $NYSI. Can turn out fine as in Nov 19, but often leads to trouble. Currently on my radar, but still time for this to resolve in the bulls favor. pic.twitter.com/TJ7YMD9CZb
— Mountain View Trading (@DanWiserMtnView) July 8, 2020
Hedge funds starting to pull back on bearish bets … latest @CFTC report shows that after reaching highest in almost a decade in middle of June, net speculative short positions have been slashed by more than 80% @Bloomberg pic.twitter.com/Qcpx5I2Gax
— Liz Ann Sonders (@LizAnnSonders) July 8, 2020
Semis vs Financials relative strength, weekly. $SOX $XLF pic.twitter.com/00jcxw2idA
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 8, 2020
$TIP hit an all-time high yesterday even though inflation is a distant dream pic.twitter.com/n85gQHgLXc
— Katherine Greifeld (@kgreifeld) July 8, 2020
Gold is at a new post-2011 high, bumping up against the $1,800 level. It has gained more than 22% since this year's low in March. pic.twitter.com/irGD83NWAD
— Lisa Abramowicz (@lisaabramowicz1) July 8, 2020
$SLV Silver making another attempt to break out and play some catch up to Gold. $GLD $GDX $SIL pic.twitter.com/Qe5USx2yIl
— Greg Rieben (@gregrieben) July 8, 2020
$GDX with the breakout and successful retest of the $32 level, broke out of bull flag and is now taking out the May peak. My target is $42, which is the 161.8 extension from the Feb/March peak/trough #gold $GDXJ pic.twitter.com/rHLWqWQGVi
— Tarek I. Saab (@FibLines) July 8, 2020
I'll keep mentioning it because I think it is important:
Copper is up again this morning – above $2.80 and now just a few pennies shy of its January peak. pic.twitter.com/kyDitUZGGF
— Willie Delwiche, CMT, CFA (@WillieDelwiche) July 8, 2020
He's on a roll again.
When @realDonaldTrump has 6 or more positive tweets about stocks within a week, the S&P 500's median 2-month return was -1.1%. pic.twitter.com/lJvDszhwzr
— SentimenTrader (@sentimentrader) July 8, 2020