The S&P 500 Index finished higher for the eighth time in the last nine sessions; it rose 0.75% and achieved another all-time high.
The NASDAQ Composite was today’s leader (+1.39%), as many technology-oriented work-from-home stocks surged aggressively.
The Russell 2000 finished higher today by 1.07%, but is the only one of the four major U.S. equity indices to have a weakly bearish intermediate posture.
Momentum was the strongest factor of the day as the “winners keep winning” theory continued to play out.
While Long Term U.S. Treasuries, foreign bonds, and the U.S. Dollar all closed up nicely today, they still have strongly bearish intermediate postures.
Commodities were quiet today, but both gold and oil remain above their rising 30-day moving averages and have bullish intermediate postures.
Emerging markets stocks continue to be the leader globally and advanced another 1.71% today.
Stock Market Outlook Video – September 1, 2020
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On the most recent Sector Selector, we saw the Communications sector rise in the rankings and the Real Estate sector fall in the rankings.
In today’s trading, Materials led the way higher and cracked fresh 3-month highs.
Technology was also strong; however, there was a pretty substantial difference between an equal weight approach versus a market-cap weighted approach.
The Utilities, Health Care, Energy, and Real Estate sectors closed lower today.
Our trade application example featured buying a put on Vornado Realty Trust (VNO) due to its break below its falling 30 day moving average and its bearish Near-Term Divergence.
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