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Today’s Summary
Thursday, August 27th, 2020
Indices: US Stocks were mixed in today’s session with the Dow Jones Industrial Average gaining 160 points or 0.57%. The S&P 500 inched higher by 0.17%, while the Nasdaq slipped 0.34%. The Russell 2000 moved higher by 0.28%.
Sectors: Financials led, rising 1.69%. Communications lagged, falling 1.22%.
Commodities: Crude Oil futures moved lower by 0.85% to $43.02 per barrel. Gold futures fell 0.83% to $1,936 per ounce.
Currencies: The US Dollar Index inched higher by 0.14%.
Interest Rates: The US 10-year Treasury yield jumped to 0.754% – the highest level since mid-June.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Lookie what is in play, courtesy of the financials coming to life! pic.twitter.com/4NZve6qtCM
— Linda Raschke (@LindaRaschke) August 27, 2020
Today’s Chart of the Day was shared on Twitter by Linda Raschke (@LindaRaschke). It’s a weekly bar chart of the Dow Jones Industrial Average over the past year. Papa Dow led the rest of the major indices today, with help from the Financial sector waking up from a long nap. On the other hand, the Tech-heavy Nasdaq took the day off after what has been a relentless rally. Linda points out that the Dow is now attempting to fill the massive gap that was formed when price opened significantly lower on February 24th. The S&P 500 successfully filled its February gap a few weeks ago, before moving on to record highs. If the Dow can fill this gap, there will be very little overhead supply to prevent it from joining the other indices at all-time highs. Until then, this area remains a key test for the Dow, so mind the gap!
Quote of the Day
“The fishermen know that the sea is dangerous and the storm terrible, but they have never found these dangers sufficient reasons for remaining ashore.”
– Vincent Van Gogh
Top Links
Bespoke Morning Lineup – Bespoke
Bespoke points out that the S&P 500 is on pace to book its best monthly win rate (% positive days in a month).
Big Stocks Making Big Moves – Rieben Financial
Greg Rieben spotlights some of the mega-cap tech stocks that have broken out this week.
When to Worry About Volatility – The Rotation Report
Aaron Jackson discusses the potential signs of volatility that he’s watching for.
Who Is Telling The Truth, Doc Copper or The Bond Market? -Kimble Charting Solutions
Chris Kimble explains that Copper and US Treasury yields are telling two completely different stories right now.
Lumber’s Historic Rally – What the FICC?
In this week’s episode of What the FICC, Tom Bruni discusses the surge in Lumber prices and what to expect going forward.
Top Tweets
Amazing stat by @jbuchbinder_LPL on #LPLMorningCall just now.
The S&P 500 total return gain in 2020 is about 9%.
That is an average yearly return. Nothing to see here …
— Ryan Detrick, CMT (@RyanDetrick) August 27, 2020
In the last 70yrs the S&P500 has found September a little trickier than all the other months. $SPY $SPX pic.twitter.com/rwzCO9FXyz
— Sam McCallum (@honeystocks1) August 26, 2020
The S&P500 index is at the most overbought (RSI) level since December 27, 2019. It's often a double-edge sword in many instances, indicating a strong trend at hand but also one vulnerable to a counter-trend dip to supports at ascending moving averages $SPX pic.twitter.com/r8JVwZEe8D
— Michael McKerr (@MikeMcKerr_TDA) August 27, 2020
Russell 2000 vs. S&P 500
Small Cap stocks seem to be rolling over in regards to their relative strength versus the broad market. pic.twitter.com/AJ788qHzwi
— Adaptiv (@adaptiv) August 27, 2020
After consolidating in continuation patterns for two months, Tech's strongest subsectors are resolving higher.. $FDN $IGV $SKYY $XLK pic.twitter.com/m9NB02OYml
— Steven Strazza (@sstrazza) August 27, 2020
US 30-year Treasury #yield spikes and the #yieldcurve steepens as the #FederalReserve will allow higher #inflation rates. pic.twitter.com/0P4cuMNOAO
— jeroen blokland (@jsblokland) August 27, 2020
10-year Treasury yields now at the highest level since mid-June lol pic.twitter.com/9a4467OPRt
— Katherine Greifeld (@kgreifeld) August 27, 2020
The Bloomberg dollar index hits its lowest since 2018. pic.twitter.com/6uUgyN8oqB
— Lisa Abramowicz (@lisaabramowicz1) August 27, 2020
yes – in most cases… it's this simple. #bitcoin$BTC $DXY $ETH pic.twitter.com/GGjyvMzg7Z
— J4 (@J4_doji) August 27, 2020
For those dreaming of an eventual return to live music, Live Nation shares are making their first peek above the 200-DMA since Feb 25. $LYV pic.twitter.com/3NtTUfr7fK
— Carl Quintanilla (@carlquintanilla) August 27, 2020