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Today’s Summary
Wednesday, July 29th, 2020
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 160 points or 0.61%. The S&P 500 and Nasdaq rose 1.24% and 1.35%, respectively. Small-Caps outperformed with the Russell 2000 gaining 2.10%.
Sectors: All 11 sectors closed higher. Energy led, rising 2.09%. Consumer Staples lagged but still inched up 0.14%.
Commodities: Crude Oil futures gained 0.56% to $41.27 per barrel. Gold futures rose for the ninth consecutive day, gaining 0.45% to an all-time high of $1,953 per ounce.
Currencies: The US Dollar Index dropped 0.50%.
Interest Rates: The US 10-year Treasury yield fell to 0.577%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
What does a weak $ mean for industry groups historically? No surprise materials are improving given history of relationship. We're still bullish on them. pic.twitter.com/UbLIZBt8oc
— RenMac: Renaissance Macro Research (@RenMacLLC) July 29, 2020
Today’s Chart of the Day was shared on Twitter by Renaissance Macro Research (@RenMacLLC). Yesterday, we highlighted the US Dollar and the impact that it’s having across asset classes. We explained that the recent Dollar weakness has provided a boost to Stocks, Commodities, and even Bitcoin. Focusing on Stocks for today, the chart here shows which industry groups within the S&P 1500 are most sensitive to changes in the US Dollar. Renaissance notes “A positive relationship means the group will decline when the Dollar declines, a negative relationship implies strength when Dollar weakens.” Notice that value-oriented sectors like Materials and Energy tend to benefit from a weaker Dollar. On the other hand, Growth-oriented sectors like Software, Biotech, and Semiconductors tend to be hurt by a weaker Dollar. In a separate comment, JC Parets summed up the biggest takeaway from this chart – “Looking for sector rotation? Here’s your catalyst.”
Quote of the Day
“Hope is not a strategy.”
– Vince Lombardi
Top Links
All That Glitters is Gold – LPL Financial Research
The team at LPL Financial Research explains that momentum could push Gold even higher, despite an already impressive rally.
Are Investors Losing Faith in the US Dollar? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the US Dollar.
Who Says Gold is Topping? – StockCharts.com
Mish Schneider weighs-in on Gold and why she thinks it will continue to trend higher.
Stock Market Analysis July 29, 2020 – AlphaTrends
In this video, Brian Shannon highlights some levels of interest to be aware of in the near-term.
The Small Chart With Big Implications – All Star Charts
Tom Bruni of All Star Charts offers a unique perspective on Small-Caps.
Top Tweets
$SPX The SP 500 remains locked between our 20 EMA Support bottom and Gap Resistance topside. Choppy in between: pic.twitter.com/lfpNxNRYhB
— Leading Edge Charts (@InformedTrader) July 29, 2020
chart showing out of growth and into value now has lower high and lower low…theme for august? pic.twitter.com/1ZWGMydCFO
— Linda Raschke (@LindaRaschke) July 29, 2020
Like Taiwan, South Korea KOSPI also improving. pic.twitter.com/EoGsH2wG3h
— Strategas (@StrategasRP) July 29, 2020
The US Dollar index cracked the 61.8% fib level. 88/89 could be up next. $DXY $USD pic.twitter.com/DoqbAjdkh7
— Greg Rieben (@gregrieben) July 28, 2020
A weakening #USdollar has put a bid under the commodity complex, which has become increasingly dominated by precious metals. #commodities #gold #preciousmetals #silver pic.twitter.com/kNwH4eYzha
— Jurrien Timmer (@TimmerFidelity) July 29, 2020
The #gold & #silver bugs may feel some pain soon pic.twitter.com/yObyXIOXK4
— Abigail Doolittle (@TheChartress) July 29, 2020
Silver with a 35% gain YTD leading Tech and S&P 500$SLV $QQQ $SPYhttps://t.co/X55WBUUsYW pic.twitter.com/UU7dOBqzyC
— Koyfin (@KoyfinCharts) July 29, 2020
The market's response to Fed Chair Powell: ?Yields on 2 & 5-year Treasuries fall to new lows. Stocks extend their rally, with the S&P & Nasdaq near session highs. Powell was sufficiently dovish to keep asset prices going up for now. pic.twitter.com/OE9nQFUvQn
— Lisa Abramowicz (@lisaabramowicz1) July 29, 2020
Welcome to 2020. pic.twitter.com/L1x1rxTpNq
— Eddy Elfenbein (@EddyElfenbein) July 29, 2020
Two most active stocks: Kodak and GE. Like the good old days. The *really* old days.
— Walter Deemer (@WalterDeemer) July 29, 2020