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Today’s Summary
Monday, August 16th, 2021
Indices: US Stocks were mixed to start the week. The Dow rose 110 points or 0.31% to an all-time high. The S&P 500 also closed at a record high, gaining 0.26%. The Nasdaq slipped 0.20%. The Russell 2000 underperformed, falling 0.89%.
Sectors: 7 of the 11 sectors closed higher. Health Care led, gaining 1.14%. Energy lagged, dropping 1.84%.
Commodities: Crude Oil futures moved lower by 1.68% to $67.29 per barrel. Gold futures rose 0.65% to $1,790 per ounce.
Currencies: The US Dollar Index inched higher by 0.10%.
Interest Rates: The 10-year US Treasury yield fell to 1.270%.
are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Dow Theory non-confirmation was triggered when Industrials made new highs and Transports did not. $TRAN now back above 50-day moving average driven by rails, delivery services. Enough to rotate back to Dow Theory buy signal? $INDU $DJIA $DJIT pic.twitter.com/AldMFOh9ru
— David Keller, CMT (@DKellerCMT) August 16, 2021
Today’s Chart of the Day was shared by David Keller (@DKellerCMT). It’s a chart of the Dow Jones Transportation Average over the past two years. Part of the bear case over the past few months has been the lack of participation from Transportation stocks. It has been more than three months since we’ve seen new highs in the Transportation Average. Meanwhile, the Dow Jones Industrial Average has continued to print new highs. Typically, you want the companies that move the goods (Dow Jones Transportation Average) to confirm the strength in the companies that make the goods (Dow Jones Industrial Average). When the two averages are in disagreement it is known as a Dow Theory Sell Signal. The good news is that things have begun to improve for the Transports in the past week. David points out that the Transportation Average has reclaimed its 50-day moving average, and it’s attempting to break out of a three-month downtrend. While Transportation stocks are still far from an all-time high, it’s encouraging to see an improvement from this key area of the market.
Quote of the Day
“Do not seek to follow in the footsteps of the wise.
Seek what they sought.”
– Matsuo Basho
Top Links
A New Uptrend Just Posted In This Major Market Index – Here Are Candidates Poised To Benefit – StockCharts
Mary Ellen Mcgonagle examines the recent bounce in Transportation stocks.
Not Your Father’s Market – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most important technical developments to keep an eye on.
Inflation and Covid Are Still in Play – Momentum Monday
Howard Lindzon and Ivanhoff highlight the strongest stocks, trends and themes across the markets.
Setups in Health Care – AlphaCharts
Brian at AlphaCharts shares some noteworthy setups in the Health Care sector.
Why Does Fibonacci Work? – Happy Hour with Traders
In this video, James Bartelloni and JC Parets discuss Fibonacci analysis.
Top Tweets
The next S&P 500 all-time high will be 50 for the year.
Can it get to 78 and top the record from 1995? pic.twitter.com/yETXYUXFV0
— Ryan Detrick, CMT (@RyanDetrick) August 16, 2021
Nice close for the $SPY. Huge volume. pic.twitter.com/VJmrb9Q1ff
— K-A Shepard (@JackDamn) August 16, 2021
$SPX $COMPQ $DJA $DJIA – the question is are these latest candles "hanging men" or bullish "hammer candles". What is your take? pic.twitter.com/ocWy1f3mUJ
— Rob Moreno (@rightviewrob) August 16, 2021
Nice bullish reversal in $SPX to close at new highs and solid reversals in many leading stocks as well. Back and fill, new highs. pic.twitter.com/iG9DxsDoiE
— Larry Tentarelli, Blue Chip Daily (@LMT978) August 16, 2021
The average intra-year drawdown of the S&P 500 Index is 14%. This year we had two drawdowns of 4%. If it stays like this in 2021, only two calendar years since 1980, 1995 and 2017, would have seen smaller intra-year drawdowns. pic.twitter.com/YeCGCPAwSA
— jeroen blokland (@jsblokland) August 16, 2021
Perhaps unrealistic to expect another three months without a 5% drawdown, as 250-day interval has occurred just six times since 1960.
H/t @vixsquared pic.twitter.com/ZaIXa1tKSi
— Mark Ungewitter (@mark_ungewitter) August 16, 2021
Small Cap Growth stocks have now given back all their alpha (plus some) following the 5-month rally in outperformance we saw from October thru February.$IWO $SPX pic.twitter.com/CzD2Enb3uu
— Ian McMillan, CMT (@the_chart_life) August 16, 2021
$IWO nah dude don't do it pic.twitter.com/CEdt18ZhA3
— Leif Soreide (@LeifSoreide) August 16, 2021
Year to date, the weight of the Financials sector has gained nearly a full percentage point. Consumer Discretionary on the other hand has fallen 1.02 percentage points. Tech is little changed.
Read more in tonight's Closer: https://t.co/C1lrVrjon0 pic.twitter.com/zky5QHJDbu— Bespoke (@bespokeinvest) August 16, 2021
$65 support in crude oil continues to hold.#OOTT #oil pic.twitter.com/sUCZuXDgzR
— Greg Rieben (@gregrieben) August 16, 2021
Gold seeing it's 3rd gap up since its large 2-day decline earlier in the month. $GLD is trying to fill that big hole up to $169 pic.twitter.com/Kf0uv64mIG
— Andrew Thrasher, CMT (@AndrewThrasher) August 16, 2021
After Gold found support at a logical level last week, I'm keeping my eyes on the Silver/Gold ratio for signs of risk appetite entering the market. $SI_F, $GC_F, $SLV, $GLD pic.twitter.com/7fIqtcevxY
— Ian Culley (@IanCulley) August 16, 2021
The strength behind $AAPL hitting an ATH, is also reflected its i relative strength $AAPL: $SPY. pic.twitter.com/2rWJ2o3Mm9
— Bailey.Baxter2020 (@BBaxter2020) August 16, 2021
$AAPL $QQQ $SPY $SPX $XLK
Don't be scared of All Time Highs… it means people want to own it. pic.twitter.com/prrxXZF9a3— Sam McCallum (@honeystocks1) August 16, 2021
You’re all caught up now. Thanks for reading!