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Today’s Summary
Monday, July 27th, 2020
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 115 points or 0.43%. The S&P 500 rose 0.74%, while the Nasdaq outperformed, gaining 1.67%. The Russell 2000 closed higher by 1.16%.
Sectors: 9 of the 11 sectors closed higher. Tech led, gaining 1.58%. Utilities lagged, falling 1.21%.
Commodities: Crude Oil futures moved higher by 0.75% to $41.60 per barrel. Gold futures jumped 1.77% to an all-time high of $1,931 per ounce.
Currencies: The US Dollar Index closed lower for the seventh day in a row, dropping 0.74%.
Interest Rates: The US 10-year Treasury yield rose to 0.618%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Gold vs it's 200 DMA. Looks like a clear top out at 25-30% pic.twitter.com/LasbjW0yeW
— Ed Bradford (@Fullcarry) July 26, 2020
Today’s Chart of the Day was shared on Twitter by Ed Bradford (@Fullcarry). Well, it finally happened. Gold hit an all-time high today for the first time in nearly 9-years. The yellow metal bottomed out in 2015 not long after Wall Street Journal columnist Jason Zweig famously called Gold a ‘pet rock.’ Ironically, this unsexy ‘pet rock’ has outperformed the S&P 500 since then. It has essentially become a momentum trade. As of today, Gold has booked a 7-day winning streak and a 7-week winning streak. So, is Gold too far extended in the near-term? Or, do we buy the long-term breakout? Ed’s chart shows Gold in relation to its 200-day moving average over the past 20-years. It’s currently about 17.5% above it’s 200-day moving average. While 17.5% is relatively extended, it’s not quite a historical extreme. As Ed points out, 25-30% would be considered an extreme reading. The current winning streak can’t last forever, but history shows us that price could continue to stretch higher before mean reversion begins to work its magic.
Quote of the Day
“In my experience, once an asset class or commodity takes out a multi-decade high, it’s probably a mistake to think you’re smarter than the crowd and fade it.”
– Josh Brown
Top Links
Sad Old Man Rocks Making New High – The Reformed Broker
Here’s a good read from Josh Brown, in which he weighs-in on the breakout in Gold.
That’s Not a Bubble, This is a Bubble – LPL Financial Research
The team at LPL Financial Research answers the question; are Growth stocks in a bubble?
Get Ready for Big Tech Earnings – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight the most dominant stocks, trends, and themes across the market.
Silver Rally: Next Stop $27? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Silver.
The Trading Pit 07/26/20 – Trend Spider
Here’s TrendSpider’s weekly video, featuring Editor of The Chart Report, Patrick Dunuwila.
Top Tweets
Gold hits a new all-time high for the first time since September 2011. $GOLD pic.twitter.com/Emv8GBOrXk
— Charlie Bilello (@charliebilello) July 27, 2020
Nearly 40% of $NDX reports on Thursday. Fasten your seat belt! $AAPL $AMZN $GOOGL $FB pic.twitter.com/HIXUgTmiwn
— Abigail Doolittle (@TheChartress) July 27, 2020
Over 50% of $SPX names remain above 200-day moving average. When the markets pullback, I like inputs like this to help differentiate between the garden variety pullback and something deeper. Still bullish. pic.twitter.com/L5whchS1Mn
— David Keller, CMT (@DKellerCMT) July 27, 2020
Home Construction $ITB
new all-time high pic.twitter.com/wahHxHMpI8— Larry Tentarelli, Blue Chip Daily (@LMT978) July 27, 2020
Everyone got $WOOD on their radar and the individual names held within?
Might be worth some due diligence… remember… it's a BIG stock market… no need to keep going back to the same names over. pic.twitter.com/R1dxAGeFUq— Sam McCallum (@honeystocks1) July 27, 2020
What a day already!#Gold reached new all-time high#Silver rises 6%#Bitcoin reclaims USD 10,000#EURUSD rises to above 1.17 pic.twitter.com/eWcvrLWZek
— jeroen blokland (@jsblokland) July 27, 2020
Bitcoin continues its tear.
It's trading up more than 12% over the last 24-hours at $11,189 a coin pic.twitter.com/ukv5a6Yo1h
— Frank Chaparro (@fintechfrank) July 27, 2020
It was only a matter of time – Bitcoin and Ethereum finally are coming to life. We are buyers of each. $BTC price objective: $12,000. $ETH price objective: $450. And from there? As high as the imagination will allow… pic.twitter.com/Mf95ETRMot
— Carter Braxton Worth (@CarterBWorth) July 27, 2020
The added fuel for Gold, Silver and potentially Bitcoin. $DXY #USD pic.twitter.com/X3h1DFtktH
— Greg Rieben (@gregrieben) July 27, 2020
One of the most important charts in macroeconomics and financial markets right now. $EURSUD
Regardless of your focus, your strategy, your investment mandate…
The Euro-Dollar exchange rate will dramatically affect asset classes & capital flows all around the world continents. pic.twitter.com/hGKUKLtMFQ
— Tiho Brkan (@TihoBrkan) July 27, 2020
How often is the relative performance (against $SPX) between Gold Miners and Tech stocks this highly correlated? Not too often. Maybe a better question is: Does one of these start to significantly outperform the other soon? $XLK $GDX pic.twitter.com/V5x3Mc12op
— Ian McMillan, CMT (@the_chart_life) July 27, 2020
Note to self. Don't overthink gold when Gold/SPX >200wma. #TrendFollowing https://t.co/mG6S5XWspf
— Mark Ungewitter (@mark_ungewitter) July 27, 2020