Tuesday, July 14th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 557 points or 2.13%. The S&P 500 and Nasdaq rose 1.34% and 0.94%, respectively. The Russell 2000 gained 1.76%.
Sectors: All 11 sectors closed higher. Energy led, gaining 3.51%. Financials lagged but still rose 0.51%.
Commodities: Crude Oil futures moved higher by 0.47% to $40.29 per barrel. Gold futures rose 0.44% to $1,813 per ounce.
Currencies: The US Dollar Index fell 0.35%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.640%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Grant Hawkridge (@granthawkridge) July 14, 2020
Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). It’s a ratio chart of the Consumer Discretionary sector ($XLY) vs. the Consumer Staples sector ($XLP). This ratio is often used to gauge risk appetite for stocks. Bulls want to see this ratio moving higher, indicating that the offensive sector ($XLY) is outperforming the defensive sector ($XLP). The good news for Bulls is that this ratio is at all-time highs for the first time since late 2018. Grant emphasizes that Bulls need this ratio to continue to hold above the 2018 highs. If it fails to do so, it could spell trouble quickly. But for now, price action in this ratio favors the Bull case for stocks.
Quote of the Day
“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”
– William O’Neil
A Dow in Nasdaq’s Clothing – Bespoke
Bespoke takes a look at the shift in index leadership that we’ve seen this week.
Money Makes the Mare Go – StockCharts.com
In this video, respected trader, Linda Raschke outlines some of the things she’s watching as we head into the second half of the year.
Reading the Signs – HumbleDollar
Mike Zaccardi discusses some of the indicators that he uses to gauge the market.
Midweek Stock Market Recap and Technical Analysis – The Trade Risk
Evan Medeiros highlights some levels of interest in the major sectors and indices.
Stock Market Remains Strong, Plus New Trade Setups – TradeThatSwing
Corey Mitchell shares his technical perspective on the S&P 500 and offers some swing trade ideas.
-2% close off the highs$SPX today
+2% close off the lows
Someone get the pills.
— Steve Deppe, CMT (@SJD10304) July 14, 2020
— Greg Rieben (@gregrieben) July 14, 2020
What Tech Bubble?
It took the Nasdaq 6501 days to cover the same ground relative to the S&P500 compared to a measly 807 days during the late 90's. That doesn't seem like a characteristic of a bubble? $NDX $QQQ $SPY $SPX pic.twitter.com/vmVE7mNj5u
— Louis (@haumicharts) July 14, 2020
Right on the cusp of #earnings season, a moment of truth for the broader market: This chart shows the Russell 2000 index, which is teetering on its up-trend line. #smallcaps #stocks #investing pic.twitter.com/EPqEcCBCUg
— Jurrien Timmer (@TimmerFidelity) July 14, 2020
— Dan Russo, CMT (@DanRusso_CMT) July 14, 2020
Watch the equal weight S&P for broader signs of weakness. pic.twitter.com/R7UKebFOEE
— Strategas (@StrategasRP) July 14, 2020
— Sarah Ponczek (@SarahPonczek) July 14, 2020
— Alan Cohen (@al_xdpg) July 14, 2020
— Mark Ungewitter (@mark_ungewitter) July 14, 2020
Frozen OJ Futures about to start their next leg higher it seems.
Needs to sustain above 128-130. pic.twitter.com/oDT0nUQngd
— Tom Bruni, CMT (@BruniCharting) July 14, 2020