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Today’s Summary
Wednesday, July 28th, 2021
Indices: US Stocks were a mixed bag in today’s session. The Dow fell 128 points or 0.36%. The S&P 500 finished flat (0.02%), while the Nasdaq rose 0.70%. The Russell 2000 outperformed, gaining 1.51%.
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining 0.91%. Consumer Staples lagged, falling 0.88%.
Commodities: Crude Oil futures moved higher by 1.03% to $72.39 per barrel. Gold futures were unchanged and continue to trade at $1,799 per ounce.
Currencies: The US Dollar Index continued lower by 0.22%.
Interest Rates: The 10-year US Treasury yield inched lower to 1.236%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
BTC vs. SPX, Weekly. Bouncing from major support. pic.twitter.com/yldrnwpd54
— Brian G (@alphacharts) July 28, 2021
Today’s Chart of the Day was shared on Twitter by Brian (@alphacharts). It’s a weekly bar chart of Bitcoin vs. the S&P 500 over the past 4.5 years. As a reminder, when this ratio is rising it means Bitcoin is outperforming the S&P 500 and vice versa. Bitcoin has been powering higher this week, after forming a major failed breakdown at the widely watched $30k level last week. It rose for the 8th consecutive day today rallying more than 30% to $40k in that time. Brian points out that, this ratio successfully tested support from the 2017 highs. Given the 8-day winning streak, it wouldn’t be surprising to see some profit-taking in the near term. However, as long as this ratio is above 7, expect Bitcoin to outperform Stocks.
Quote of the Day
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
– Mark Twain
Top Links
Fearful Sentiment with Stocks Near Record Levels – Potomac Fund Management
Dan Russo shares his thoughts on the current market environment.
Advanced Micro Surges Into a Record Narrow One Year Range – Bespoke
Bespoke points out that $AMD has formed a tight base over the past year.
What are the Key Support Levels in the Major Indices? – StockCharts
Mish Schneider lays out some levels to watch on the major averages.
A New Relative Low for an Important Sector – SentimenTrader
Jason Goepfert points out that the Financial sector is hitting 3-month lows relative to the S&P 500.
Modern 4-Year Cycle Theory Approaching Near Term High – Almanac Trader
Jeff Hirsch checks where we are in the 4-year Presidential cycle.
Top Tweets
The median Nasdaq stock is down 18% from its highs. If you're waiting for "a correction" in stocks, what do you call the past 5 months?
— J.C. Parets (@allstarcharts) July 28, 2021
We also have the S&P 500 on pace to close the month of July higher by 15% or more on a YTD basis.
The rest of the year's then gone 13-1 for average returns of 3.43%.
(The 1 loser was a big one though…1987).
— Steve Deppe, CMT (@SJD10304) July 28, 2021
$IWM sagged to the close, but $EEM went out on the highs pic.twitter.com/EXRcisTulp
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 28, 2021
S&P 500 Hotels, Restaurants, and Leisure Index made a new closing high yesterday and the 50-day is turning up…also printed a 21-day relative high while the Delta variant drives the news narrative. pic.twitter.com/S7Ua02vwCp
— Dan Russo, CMT (@DanRusso_CMT) July 28, 2021
Is copper trying to tell us something here? #copper #gold $TNX pic.twitter.com/5mJnI0CXcj
— Grant Hawkridge (@granthawkridge) July 28, 2021
Bitcoin in overbought territory first time since March…$BTC $ETH pic.twitter.com/J858K8Xf4l
— J4 (@J4_doji) July 28, 2021
It's been pretty clear that in Crypto's recovery the last week, Bitcoin's been leading over Ethereum and the other smaller coins – as seen by Bitcoin's dominance of the total Cryptocurrency market-cap pic.twitter.com/QE9x2CB5Ib
— Louis Sykes (@haumicharts) July 28, 2021
$ALB pretty chart. Looks good above the yellow. pic.twitter.com/IIzGsC4xUy
— Gregory Krupinski (@G_krupins) July 28, 2021
$AMD (Semiconductors) Still another ~35% upside till the next fib extension? pic.twitter.com/6EhNBB38RW
— Pratyush Tulsian (@PrattyCharts) July 28, 2021
? If you’re happy and you know it raise your stop ????
— A. Maceroni ? (@AnthonyMaceroni) July 28, 2021
You’re all caught up now. Thanks for reading!