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Today’s Summary
Thursday, August 1st, 2019
Indices: US stocks were lower in today’s session with the Dow Jones Industrial Average closing down 281 points or 1.23%. The S&P 500 fell 0.90%, and the Nasdaq fell 0.79%.
Sectors: Utilities led, gaining 1.02%. Financials lagged, falling 2.27%.
Commodities: Crude Oil futures had their worst day in over four years, dropping 8.24% to $53.70 per barrel. Gold futures rose 1.33% to $1,450 per ounce.
Currencies: The US Dollar Index slipped 0.15%.
Interest Rates: The US 10-year Treasury yield fell below 2% to 1.902% – its lowest level since 2016.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by @Hipster_Trader. It’s a monthly candlestick chart of the S&P 500 going back over 20 years. We like the chart because it provides a much needed long-term perspective on a day like today. Hipster sarcastically remarks, “fear grips Wall Street as markets crash.” You may have felt this way today with the VIX soaring over 10% and renewed chatter about Trump’s Trade War. However, when you tune out the noise, the reality is that the S&P 500 is less than 3% off its all-time high. Taking a step back from day-to-day market commentary, the situation isn’t nearly as bad.
Quote of The Day
Top Links
The Genomics Revolution Hits New Highs – The Chart Report
In this week’s Chart of the Week column, we take a look at the Ark Geonomics Revolution Multi-Sector ETF, $ARKG. We point out that the Geonomics ETF is breaking out to all-time highs and outperforming both the S&P 500 and Biotech.
Pullback Could Provide Test of Relative Strength – Baird
This note from Baird discusses the fact that sentiment, momentum, and seasonality are all setting the stage for a pullback before the end of summer.
Under Armour, Just Slipped into a Correction, and Chart Suggests More Room to Fall – CNBC
In this clip from CNBC, Katie Stockton of Fairlead Strategies shares her technical perspective on Under Armour ($UA) after the stock had one of its worst days in years.
Cup & Handle Opportunities – Tech Charts
Here’s a great post for those new to Technical Analysis. Aksel Kibar shows readers how to identify and trade a cup & handle chart pattern. He uses $NVCR and $RETA as examples of this pattern.
Two Must-See Charts About the S&P 500 and the British Pound – Bloomberg
Walter Zimmerman of ICAP Technical Analysis made an appearance on Bloomberg to discuss what the charts are suggesting for the S&P 500 and the British Pound.
Top 10 Tweets
Here is a chart of the $SPX with red lines denoting times the President announced/tweeted escalations in the US-China trade war. The purple is FOMC rate decisions. Those two things are no even more intertwined pic.twitter.com/TiPcYdAJ0W
— John Kicklighter (@JohnKicklighter) August 1, 2019
April highs coming into play for the S&P 500. So much for a quiet August. pic.twitter.com/QuATlWTvOi
— Bespoke (@bespokeinvest) August 1, 2019
Even though we saw a great rally from yesterday's low…we were unable to clear the hurdle we were watching on the way up and failed miserably. Notice the symmetry between the rally from the low and the last rally swing…. Note the 5 ema has crossed below the 13 ema… pic.twitter.com/diHrOdXeV1
— Carolyn Boroden (@Fibonacciqueen) August 1, 2019
$SPY VWAP anchored from the June low pic.twitter.com/9Iv25HYvfs
— Brian Shannon, CMT (@alphatrends) August 1, 2019
The most IMPORTANT chart for me right now.
It pays to be bullish in an uptrend. However, it does not pay to be bullish in a downtrend.
It's only Thursday, so we still got one more trading day to go this week — however so far this is looking like a FALSE breakout on the upside. pic.twitter.com/XOj52ByxEo
— Tiho Brkan (@TihoBrkan) August 1, 2019
… and here’s the immediate reaction of some key #markets: yields plunge, with the 10-year US government bond now trading below 1.90% and the Dow turning negative. #economy #investing #investors pic.twitter.com/ocUriz6qA4
— Mohamed A. El-Erian (@elerianm) August 1, 2019
Best day for TLT in over a year pic.twitter.com/Cs8piDrOTT
— Luke Kawa (@LJKawa) August 1, 2019
Meanwhile…$ief pic.twitter.com/ieDfP5VfHs
— Dan Russo, CMT (@DanRusso_CMT) August 1, 2019
FYI- VIX just hit its upper weekly band. Good to see some fear coming into the market. Been too complacent of late. pic.twitter.com/Z46z6zgMph
— jesse stine (@InsiderBuySS) August 1, 2019
$gld had a big igniting bar. A little upside follow thru would be nice ?? pic.twitter.com/be5rMbvjie
— Scott Redler (@RedDogT3) August 1, 2019
Upcoming Events
Wednesday, August 7th – Webcast: “Making The Most Of Panic – Exploring The Value Of Combining Price & Supply/Demand Indicators” with Chris Diodato, CMT
You’re all caught up now. Thanks for reading!