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Today’s Summary
Thursday, July 30th, 2020
Indices: US stocks were mostly lower in today’s session. The Dow Jones Industrial Average fell 226 points or 0.85%. The Nasdaq outperformed, rising 0.43%, while the S&P 500 slipped 0.38%. The Russell 2000 slipped 0.37%.
Sectors: 9 of the 11 sectors closed lower. Tech led, rising 0.56%. Energy lagged dropping 3.93%.
Commodities: Crude Oil futures fell 3.27% to $39.92 per barrel. Gold futures rose 0.69% to an all-time high of $1,967 per ounce.
Currencies: The US Dollar Index continued lower by 0.32%.
Interest Rates: The US 10-year Treasury yield fell to 0.546%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
I cringe when I hear people say "Intel's a good co, its down too much, Im buying here"
Look how that has worked the last 2 times, if you scroll back on your chart you will see it has history of disappointing "dip buyers" $INTC
so many stocks in uptrends, y waste your time? pic.twitter.com/hlejrfCaKn
— Brian Shannon, CMT (@alphatrends) July 30, 2020
Today’s Chart of the Day was shared on Twitter by Brian Shannon (@alphatrends). With the height of earnings season upon us, Brian reminds us that trying to catch a falling knife often ends badly. Intel ($INTC) gapped lower by more than 13% at the open last Friday, after the company reported earnings the night before. It’s down another 6% so far this week. As Brian points out, the last two times Intel gapped lower after earnings like this, price went on to make another double-digit (%) leg lower over the following weeks. It’s easy for a novice trader to be tempted to “buy the dip” after an earnings gap like this. After all, you’re supposed to buy low and sell high, right? Well, as we know, markets tend to trend. What looks low often goes lower, and what looks high often goes higher.
Quote of the Day
“Have an opinion on what the market should do but don’t decide what the market will do.”
– Bernard Baruch
Top Links
S&P 500 Stronger Under the Surface – Bespoke
In this note, Bespoke breaks down some of the sector rotation trends over the past 10-days.
King Dollar is Testing Strong Support, Gold Bulls Hoping for a Trend Change – Kimble Charting Solutions
Chris Kimble explains that Gold could move higher if the US Dollar fails to hold above long-term support here.
Agricultural Commodity Trade Drought Continues – All Star Charts
Tom Bruni of All Star Charts takes a look at Agricultural Commodities.
Where Do We (Investors) Stand? – David Cox
In this video, Portfolio Manager, David Cox highlights some of the noteworthy technical developments going on across the markets.
August/September is Usually the Worst Consecutive Two-Month Period for Stocks – DeCarley Trading
Carley Garner discusses the potential for a pick-up in volatility over the next couple of months.
Top Tweets
Tech rules! #NASDAQ future spikes after hours as #Amazon, #Facebook, and #Google beat #earnings estimates. pic.twitter.com/H8I5Ot8sa5
— jeroen blokland (@jsblokland) July 30, 2020
$ES, 1h
'You shall not pass' pattern.
The 3185 support held again today… for the forth time.
Know your pivots! pic.twitter.com/AkGGcGa2gJ
— Yuriy Matso (@yuriymatso) July 30, 2020
$IWM small caps look pretty good over this 145ish level https://t.co/f6MScmkCCp
— Gregory Krupinski (@G_krupins) July 30, 2020
As of yesterday, U.S. dollar nearing worst month in a decade
[Past performance is no guarantee of future results]@Bloomberg pic.twitter.com/S1wBSvIBPv— Liz Ann Sonders (@LizAnnSonders) July 30, 2020
#Dollar — Reminder, 16-year cycle has "captured" all major swings ……….. next trough not until February 2025. pic.twitter.com/eVTfL4goDy
— Nautilus Research (@NautilusCap) July 30, 2020
Final currency chart for tonight: Aussie Dollar.
The weakness in the Aussie Dollar seems to have come to an end.
The Kangaroo currency is breaking out against the greenback, similar to the Euro and several other cross pairs.$AUDUSD pic.twitter.com/ppfWlylDU3
— Tiho Brkan (@TihoBrkan) July 30, 2020
Crude Oil stuck in a narrowing range with narrowing Bollinger Bands. Periods of compressed volatility usually mean an impending breakout. Whichever way crude breaks from here, I'd expect the mo to continue in that direction. $CL1 $USO $WTIC pic.twitter.com/jZnFdz4iGY
— David Keller, CMT (@DKellerCMT) July 30, 2020
Another day, another slew of record low yields on 2 and 5-year U.S. Treasuries. Yields on 10-year notes are within 2 basis points of their all-time lows. pic.twitter.com/QcLt1u2pUm
— Lisa Abramowicz (@lisaabramowicz1) July 30, 2020
It only took 20-years for QCOM to regain its 2000 peak level. I guess that makes this a huge base breakout….
-Jeff deGraaf pic.twitter.com/1OyE22DoCk— RenMac: Renaissance Macro Research (@RenMacLLC) July 30, 2020
Here's a quick reminder as to how markets work..
What do we think the market is pricing in for a rebound? pic.twitter.com/MM6gCun9nW
— Michael Antonelli (@BullandBaird) July 30, 2020