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Today’s Summary
Thursday, August 6th, 2020
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average gaining 185 points or 0.68%. The S&P 500 and Nasdaq rose 0.64% and 1.00%, respectively. Small-Caps underperformed, slipping 0.10%.
Sectors: Communications led, gaining 2.63%. Energy lagged, falling 0.80%.
Commodities: Crude Oil futures slipped 0.57% to $41.95 per barrel. Gold futures rose 0.98% to a record high of $2,069 per ounce.
Currencies: The US Dollar Index moved slightly lower by 0.04%.
Interest Rates: The US 10-year Treasury yield fell to 0.537%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX gap filled pic.twitter.com/byu5kcvR2K
— ATMcharts (@ATMcharts) August 6, 2020
Today’s Chart of the Day was shared on Twitter by Aaron Jackson @ATMcharts. It’s a daily candlestick chart of the S&P 500 over the past year. Aaron points out that price closed the February 24th gap today. A couple of weeks ago, we noted that this gap was pretty much the final level of potential resistance standing in the way of all-time highs. Why do we care about all-time highs? For starters, it’s the single most bullish thing that can happen to an asset. Once price reaches new highs, there’s virtually no overhead supply, or price memory to prevent it from making another leg higher. If you don’t believe me, just take a look at what Gold has done since it broke out a few weeks ago. Without getting too ahead of ourselves, the S&P 500 is still about 1% away from an all-time high. But, now that the massive gap from February 24th has been filled, what’s left to stop this proverbial rocketship from blasting through the atmosphere? **knocks on wood**
Quote of the Day
“You’re never going to beat the market if you don’t own the things that are beating the market.”
– Ian McMillan
Top Links
Ari Wald Breaks Down Sector Dispersion – TD Ameritrade Network
Ari Wald of Oppenheimer discusses the wide sector dispersion going on right now and what it means for the broader market.
Break from “Pennant” Targets $500 for AAPL – StockCharts.com
Julius de Kempenaer explains why he thinks Apple Inc. ($AAPL) will hit $500.
More Art Than Science – Futures Radio
In this podcast, Anthony Crudele interviews technician, Ian McMillan. They discusses the importance of relative strength and more.
Silver Takes the Gold – Bespoke
Gold’s rally has been nothing short of impressive, however, Bespoke shows that Silver has been the real show stopper.
Trend Following Turtle Tails (and Tales) with Jerry Parker – The Derivative
Here’s a good conversation on trend following with legendary futures trader, Jerry Parker.
Top Tweets
$SPX Massive Feb 24 gap closed today at 3338. Feb 21 gap closes at 3373 pic.twitter.com/3anu6IzdXz
— ukarlewitz (@ukarlewitz) August 6, 2020
At the close… $SPX is a breath away from a new ATH pic.twitter.com/GzrzJygzTH
— Michael Antonelli (@BullandBaird) August 6, 2020
Important test of the June highs for the equal weight S&P and the Russell 2000. pic.twitter.com/guRkI4Vhgj
— Strategas (@StrategasRP) August 6, 2020
$XLF relative to $SPX put in a potential false breakdown right at the 2009 lows with a massive momentum divergence. Are banks poised to start to out perform? pic.twitter.com/hNWvBDTU0g
— Jack (@alphacharts365) August 6, 2020
#Homebuilders #Deurbanization pic.twitter.com/srEMC67fB3
— Nautilus Research (@NautilusCap) August 6, 2020
Still seems like this shouldn't be (based on the narratives out there)…
S&P 500 EW has beaten the S&P 100 since the low. $RSP $OEF pic.twitter.com/hDOmIbdJTy— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 6, 2020
That's now 15 for 15 for the shiny yellow metal on the futures market:
Gold is higher 15 days in a row for about +15% and this is well beyond the limit of my imagination 15 trading days ago. $gld pic.twitter.com/XplE06sLch
— Steve Deppe, CMT (@SJD10304) August 6, 2020
The #Gold/#Silver ratio is down a whopping 42% since the peak mid March. pic.twitter.com/heVYJ1gEzA
— jeroen blokland (@jsblokland) August 6, 2020
1-month performance of Gold, Silver, Bitcoin and S&P 500$GLD $SLV $BTC $SPYhttps://t.co/A4D8cCNXgZ pic.twitter.com/R48Lf6AZgx
— Koyfin (@KoyfinCharts) August 6, 2020
S&P 500 record highs in August are like sweatshirts in August: you just don't see them that much (at least not in my neck of the woods).
Since 1950, the S&P 500 has posted 78 record highs in the month of August, the lowest total for any month of the year.
— Callie Cox (@callieabost) August 6, 2020