Wednesday, August 5th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 373 points or 1.39%. The S&P 500 and Nasdaq rose 0.64% and 0.52%, respectively. Small-Caps outperformed for the third straight day with the Russell 2000 jumping 1.91%.
Sectors: Industrials led, gaining 1.91%. Utilities lagged, falling 1.28%.
Commodities: Crude Oil futures rose 1.18% to $42.19 per barrel. Gold futures continued higher by 1.40% to a record high of $2,049 per ounce.
Currencies: The US Dollar Index fell 0.48%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.554%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Drew Wells, CMT, CIMA® (@DrewTheCharts) August 5, 2020
Today’s Chart of the Day was shared on Twitter by Drew Wells (@DrewTheCharts). There’s been a lot of concern over market breadth lately. Many warn that the S&P 500 has become saturated to a handful of Mega-Cap stocks, namely, $AAPL, $MSFT, $AMZN, $FB, $GOOG. Drew offers a somewhat contrarian take on breadth here. He points out that equal-weight S&P 500 ($RSP) is slightly outperforming cap-weight S&P 500 ($SPY) since the March 23rd low. Equal-weight ($RSP) is up 51.83%, while cap-weight ($SPY) is up 49.50%. To be fair, equal-weight is still below its June high. However, the fact that equal-weight has continuously led off of a major cyclical low is constructive. It suggests that breadth and Mega-Cap leadership are not as unhealthy as some think. Further outperformance from equal-weight would be bullish, as it would be evidence of broadening participation.
Quote of the Day
“An expert is someone who knows some of the worst mistakes that can be made in his subject, and how to avoid them.”
– Werner Heisenberg
Why Markets Don’t Seem to Care if the Economy Stinks – Bloomberg
Here’s a great read from Barry Ritholtz. He explains why the S&P 500 continues to march higher despite a grim economic backdrop.
Todd Sohn On Dropping Dollar’s Impact on Markets – TD Ameritrade Network
In this clip, Todd Sohn of Strategas Research shares his thoughts on the US Dollar, Home Builders, and Semiconductors.
Metals and Miners – The Rotation Report
Aaron Jackson takes a look at Precious, Rare, and Industrial Metals.
Is the US Dollar Nearing Bottom? Or Is It Different This Time? – Kimble Charting Solutions
Chris Kimble points out that the US Dollar is testing a long-term trendline while sentiment is extremely bearish.
New Lows in Rates – Buy Bonds – All Star Charts
Tom Bruni of All Star Charts discusses the drop in Treasury yields.
We're in the end zone!
The S&P 500 closed within 2% of its record high (!) for the first time since the bear market began.
For what it's worth, the last five bear markets have taken an average of 11 trading days from first day within 2% of a peak until a new peak.
— Callie Cox (@callieabost) August 5, 2020
The S&P 500 is ~2% away from its record high pic.twitter.com/gvqPnmRhzg
— Katherine Greifeld (@kgreifeld) August 5, 2020
Out of the coil ..bullish breakout pic.twitter.com/1uBMOzUxWo
— KKern, TTB (@kkernttb) August 5, 2020
— Sam McCallum (@honeystocks1) August 5, 2020
— Ian McMillan, CMT (@the_chart_life) August 5, 2020
Famed market technician Phil D. Gapp says that the February 21st gap has now been filled via today's move above 3328.45. He further advises that it would take a decline to 3272.17 to fill Monday's gap. pic.twitter.com/NtmxMp4AyT
— Walter Deemer (@WalterDeemer) August 5, 2020
More new highs for the NYSE A/D line today.
Historically, this peaks about about a year before the S&P 500, so new highs should suggest this bull market isn't done quite yet. pic.twitter.com/AKyiaffhbd
— Ryan Detrick, CMT (@RyanDetrick) August 5, 2020
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) August 5, 2020
— Greg Rieben (@gregrieben) August 5, 2020
— Scott Redler (@RedDogT3) August 5, 2020
Gold has rallied for 13 out of 14 days.
That has happened never times before. pic.twitter.com/tF0eW2iFto
— SentimenTrader (@sentimentrader) August 5, 2020
— jeroen blokland (@jsblokland) August 5, 2020
The Nasdaq-100 is now up 26% YTD.
If the market closed today, this would go down as its 6th best-performing year of the last 20 years. Think about that. Mind-boggling.
— Scheplick (@scheplick) August 5, 2020