Friday, July 10th, 2020
Indices: US Stocks ended the week on a positive note, with the Dow Jones Industrial Average advancing 369 points or 1.44%. The S&P 500 and Nasdaq rose 1.05% and 0.66%, respectively. Small-Caps outperformed with the Russell 2000 closing up 1.70%.
Sectors: 9 of the 11 sectors closed higher. Financials led nicely, gaining 3.44%. Health Care lagged slipping 0.24%.
Commodities: Crude Oil futures moved higher by 2.52% to $40.62 per barrel. Gold futures inched lower by 0.11% to $1,802 per ounce.
Currencies: The US Dollar Index slipped 0.13%.
Interest Rates: The US 10-year Treasury yield rose to 0.646%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Weekly $SPX update: another solid week for stocks and another feather in the long term trend's cap. The 3000 level base held strong and MACD signal line about to cross above 0. pic.twitter.com/9DyUGGHZ94
— Michael Turvey (@MikeTurvey_TDA) July 10, 2020
Today’s Chart of the Day was shared on Twitter by Michael Turvey of TD Ameritrade (@MikeTurvey_TDA). It’s a weekly chart of the S&P 500 over the past year. The S&P 500 booked a decent gain of 1.75% this week, marking the second straight weekly gain. Michael points out that the MACD signal line is close to rising above 0, which would be yet another bullish confirmation signal. There are some notable risks brewing under the surface, including frothy sentiment and weakening breadth. Market internals are certainly worth paying attention to, but they come secondary to price, and for now, price is telling us that the trend remains higher. Keep it simple; the trend is your friend until the end when it bends.
Quote of the Day
“Isn’t it funny how day by day nothing changes, but when you look back everything is different?”
– C.S. Lewis
Overbought Means Up A Lot – StockCharts.com
David Keller takes a look at $ATVI, $AMZN, and $TSLA, and reminds us that overbought RSI readings aren’t necessarily bearish.
S&P 500 Sends Bullish Technical Signal With Golden Cross – Bloomberg
Here’s another read on the infamous Golden Cross indicator that fired this week.
Where Do We (Investors) Stand? – David Cox
In this video, David Cox highlights some notable technical developments.
Happy Hour w/ Trader Howard Lindzon – All Star Charts
JC Parets and Howard Lindzon discuss some of their favorite stocks and trends in the market right now.
Not Crazy Can Still Be Nuts – The Irrelevant Investor
Michael Batnick contrasts today’s Nasdaq boom with the dotcom bubble.
If the 100 smallest stocks in the S&P 500 doubled from here, the impact on the index would be a gain of just under 2.5%.
— Bespoke (@bespokeinvest) July 10, 2020
Nasdaq in the ballpark of an extreme. pic.twitter.com/NYJj0Cd3zE
— Strategas (@StrategasRP) July 10, 2020
$NDX is obviously stretched. But is it a “bubble?” 24-month rate of change vs. $SPX is currently 29%, far below 100% threshold associated with 40 historic cases since 1928. See attached thread. https://t.co/rtgXyLEfL2
— Mark Ungewitter (@mark_ungewitter) July 10, 2020
Since S&P’s latest peak on 6/8, NASDAQ has continued to climb while S&P has moved sideways … yet, breadth getting decisively weaker, with % of members > 50d moving averages persistently falling (for NASDAQ, lowest since April)
[Past performance is no guarantee of future results] pic.twitter.com/31aju5lbhJ
— Liz Ann Sonders (@LizAnnSonders) July 10, 2020
Instead of breadth, I’d keep two eyes on this. Pretty consistent pattern after getting into the basement. Last 4 days avg of 0.43. Took a little more time in 2011 $cpce $spx pic.twitter.com/9iLAMkfLxF
— ukarlewitz (@ukarlewitz) July 10, 2020
Here, a daily plot of the #SP500. My best guess is that we are in the midst of a corrective a-b-c pattern that could retrace a third of the gains (down to 2800 to 2900), before the up-trend resumes. #SPX pic.twitter.com/3C3XSnkv7n
— Jurrien Timmer (@TimmerFidelity) June 30, 2020
Shanghai Composite / SPX — Long-term Support? pic.twitter.com/mcGQbuXuWT
— Nautilus Research (@NautilusCap) July 10, 2020
THE chart to watch right now pic.twitter.com/uL4vxrVHdn
— J.C. Parets (@allstarcharts) July 10, 2020
$AMZN – that's now 10 straight weeks, and 16 of the last 17, to the upside.
I'm not even going to bother with the returns – they're insane. pic.twitter.com/sTlsHQKKw9
— Steve Deppe, CMT (@SJD10304) July 10, 2020
Nasdaq initially stood for National Association of Securities Dealers Automated Quotations.
Hearing rumors the acronym will be changed to Never A Sell, Don't Ask Questions…. pic.twitter.com/7LGwxKs8tV
— Michael Santoli (@michaelsantoli) July 10, 2020