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Today’s Summary
Thursday, July 25th, 2019
Indices: US stocks were lower in today’s session with the Dow Jones Industrial Average dropping 129 points or 0.47%. The Russell 2000 was the weakest of the major indices, falling 1.20%.
Sectors: Consumer Staples was the only sector to close positive, gaining 0.13%. Energy lagged, falling 1.13%.
Commodities: Crude Oil futures gained 0.25% to settle at $56.02 per barrel. Gold futures fell 0.55% to $1,416. per ounce.
Currencies: The US Dollar Index inched higher by 0.06%.
Interest Rates: The US 10-year Treasury yield rose to 2.083%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Troy Bombardia (@bullmarketsco). It’s a chart of the Volatility Index ($VIX) with a table showing how the VIX historically performs after falling below 12. As Troy points out, the VIX fell below 12 today for the first time in over three months. According to his table, the VIX tends to be higher the week after falling below this critical level, 85% of the time with an average gain of 5.38%. If history is any guide, it would be wise to anticipate a pick up in volatility from these depressed levels, particularly in the very near term.
Quote of The Day
Top Links
What are “The Junkies” Doing? – All Star Charts
Tom Bruni of All Star Charts examines the ratio of Silver to Small-cap US Stocks. He calls this the junkie ratio in reference to the fact that these two represent the riskiest assets in their respective markets.
Market Outlook – 07/24/2019 – David Settle
In this video, David Settle of Market Scholars rips through dozens of charts and weighs the bullish and bearish technical developments in order to shape his market outlook.
Sentiment Steps Back – Bespoke
Here’s an analysis of the latest AAII Sentiment Survey from Bespoke. They highlight the fact that bullish sentiment dropped from 35.93% to 31.74% despite the market being near record highs.
Todd Gordon’s Apple Trade Ahead of Earnings – CNBC
Todd Gordon of TradingAnalysis.com outlines a bullish options trade on Apple ($AAPL) ahead of this week’s earnings report.
Technicals Support New Highs for the Nasdaq 100, BofA Merrill’s Suttmeier Says
In this clip from Bloomberg, Technical Analyst, Steve Suttmeier shares his thoughts on tech and growth stocks.
Top 10 Tweets
If U.S. equity market turns down hard from here the mega-bears will be enshrined. If $SPX goes to 3,500 they will be discredited and forgotten. This is called being "all-in" pic.twitter.com/G8STh1i7zG
— Peter Brandt (@PeterLBrandt) July 25, 2019
Mid cap stocks closing to confirming an upside breakout. Confirmation from mid and small caps would certainly add fuel to the bull case! $MID $MDY pic.twitter.com/neh8upkgFy
— David Keller, CMT (@DKellerCMT) July 25, 2019
Financials are finally showing signs of life relative to the #SPX with $XLF having reversed a long-term downtrend and now above short-term resistance pic.twitter.com/Q9czbuLcuD
— Katie Stockton, CMT (@StocktonKatie) July 25, 2019
Imminent breakout or a 5th rejection in the SMH/SPY ratio? Place your bets players…$SMH $SOXX $SOX $SPY pic.twitter.com/8sp9IK74Xj
— Matthew Timpane, CMT (@offbeatoperator) July 25, 2019
S&P Industrials breaking out accompanied by strong participation. pic.twitter.com/8v26ErovCX
— Nautilus Research (@NautilusCap) July 25, 2019
Nearly $14 trillion of debt trades at negative yields now, a new record. pic.twitter.com/aJMZrGmpcP
— Lisa Abramowicz (@lisaabramowicz1) July 25, 2019
#Silver is outpacing #gold in recent weeks. But that is only after the gold/silver ratio came near record high levels. pic.twitter.com/SGEYfJyXmx
— jeroen blokland (@jsblokland) July 24, 2019
Aggregate Flow into all Silver ETFs.
Highest extreme in history, and the *speed* of the buying is absolutely stunning.
Even if this is a new Bull market, it could use a reset: after most prior spikes, Silver spent months correcting/consolidating.$SI_F $SLV $XAG #Silver pic.twitter.com/M8Xx0BF9Ff
— Macro Charts (@MacroCharts) July 25, 2019
1/ a short thread on cyclical (short term) vs secular (long term) investing, and crypto
secular investment trends take a long time to play out, and are often driven by a paradigm shift / once in a generation event. @amazon $AMZN is a great example. pic.twitter.com/29Q9NbwwLB
— Meltem Demirors (@Melt_Dem) July 25, 2019
Shoot… I missed the $TSLA call.. I see it went well pic.twitter.com/cXp2HXlzBQ
— ??? (@chigrl) July 24, 2019
Upcoming Events
Wednesday, August 7th – Webcast: “Making The Most Of Panic – Exploring The Value Of Combining Price & Supply/Demand Indicators” with Chris Diodato, CMT
You’re all caught up now. Thanks for reading!