Tuesday, July 27th, 2021
Indices: US Stocks closed lower in today’s session with the Dow slipping 86 points or 0.24%. The S&P 500 and Nasdaq fell 0.47% and 1.21%, respectively. The Russell 2000 dropped 1.13%.
Sectors: 5 of the 11 sectors closed higher. Utilities led, gaining 1.72%. Communications lagged, falling 1.19%.
Commodities: Crude Oil futures moved lower by 0.36% to $71.65 per barrel. Gold futures were unchanged and continue to trade at $1,799 per ounce.
Currencies: The US Dollar Index slipped 0.17%.
Interest Rates: The 10-year US Treasury yield fell to 1.243%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Chris Verrone (@verrone_chris) July 27, 2021
Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). It’s a chart of the China Internet ETF, $KWEB, over the past 3.5 years. The top-weighted stocks in this popular ETF include Tencent, Alibaba, Meituan, Pinduoduo, and JD.com. As we highlighted yesterday, Chinese stocks have been getting absolutely whacked lately. At this point, $KWEB is more than 50% off its February highs. The bloodbath continued in today’s session, with $KWEB down as much as 8.4% at one point intraday. To be fair, it pared some of those losses to close down 4.6%. As we know, trying to catch a falling knife is never safe. However, Chris points out that today was the highest volume day in $KWEB’s history. Chirs adds that volume spikes like this one are often indicative of capitulation, where underwater investors throw in the towel and say “get me out at any price.” Could this be the final puke for $KWEB?
Quote of the Day
“A bull market will climb a wall of worry, while a bear market will slide a slippery slope of hope.”
– Old Wall Street Adage
It’s Been More Than 90 Days Since Small-Cap Stocks Did This – SentimenTrader
Jason Goepfert points out that the Russell 2000 is flashing a bullish signal for the S&P 500.
Technology Rotating Into Leading Quadrant on RRG, But Will it Be Enough? – StockCharts
Julius de Kempenaer analyzes sector rotation.
A Big Week for Technology and Communication Services – Potomac Fund Management
Dan Russo takes a look at each of the 11 sectors of the S&P on a relative basis.
There is No Such Thing as a “Normal” Market Environment – A Wealth of Common Sense
Ben Carlson explains that stock prices, interest rates, inflation, and valuations are almost never at equilibrium.
Are Copper and Steel Prices Set For Major Breakouts? – See It Market
Chris Kimble points out that Copper and Steel are both testing long-term resistance levels.
At close: 🍎 pic.twitter.com/YuqSUdvdOr
— unusual_whales (@unusual_whales) July 27, 2021
$RSP outperforming the cap weighted indices is a major positive IF (big if) it can follow through.
— Ken Goodreau, CMT (@KenGoodreau) July 27, 2021
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 27, 2021
While there is almost as much cash on the sidelines as there was in March 2020, it has a lot less buying power now. As a percentage of market cap, it has been cut in half, since the market value of the S&P 500 has grown to $39.1 trillion from $19.3 trillion. pic.twitter.com/shRFO8UdCi
— Jurrien Timmer (@TimmerFidelity) July 27, 2021
— R. Alfonso Depablos (@AlfCharts) July 27, 2021
— jeroen blokland (@jsblokland) July 27, 2021
Chinese internet stocks- step in and do some buying here, our thinking.
The selloff in the KraneShares CSI China Internet Fund $KWEB is judged to be extreme day to day, hour to hour, week over week; our thinking here is to be contrarian and do some buying. pic.twitter.com/ENSd4isT3Y
— Carter Braxton Worth (@CarterBWorth) July 27, 2021
A historic collapse in Chinese Equities.
Traders are dumping everything – fearing "nothing is safe".
Among the rubble: some of the best Stocks of all time – near their most extreme oversold levels ever.
All other panics led to career-making rallies – is this time different? pic.twitter.com/S4kPGOZRbg
— Macro Charts (@MacroCharts) July 27, 2021
— Ian McMillan, CMT (@the_chart_life) July 27, 2021
— Bailey.Baxter2020 (@BBaxter2020) July 27, 2021
— Pat Mullaly, CMT (@PMullaly_TDA) July 27, 2021
You’re all caught up now. Thanks for reading!