Stocktwits Chart Art: August 07, 2024

STOCKTWITS CHART ART: AUGUST 07, 2024
The Stocktwits Summary 📝

Stocks tried to keep their upward momentum intact, but sellers came in throughout the day and pushed the indexes back into the red. The overall cautious tone continues among retail investors, with Stocktwits sentiment remaining in ‘neutral’ or ‘bearish’ territory for the major indexes. 😐

Here’s how the major indexes ended the day:

*The ST Sentiment Score & Message Volume scales range from 0 to 100 (extremely bearish to extremely bullish). More info here.

And here were Stocktwits’ top Trending symbols:

CHART OF THE DAY
A Key Risk-On/Risk-Off Ratio Flashes Caution ⚠️

There are a lot of ratio charts technical analysts reference when trying to assess risk appetite in the market. One of those is the ratio of the consumer discretionary sector relative to the consumer staples ratio. 👀

The reasoning for this is that long-only institutions cannot go to cash when they want to be more cautious in the market (like some are today). Instead, they’ll swap their long holdings in companies tied to cyclical economic activity for companies that can still do well in weaker economies.

That would mean selling restaurant chains or airlines whose products are considered ‘discretionary’ purchases and buying companies that sell consumer staples like household goods, foods/beverages, alcohol/tobacco, etc., that people will buy regardless of the economy.

Stocktwits user @HostileCharts pointed out today that this ratio is hitting fresh lows for the first time in recent history, signaling some cautious positioning among market participants. 😬

Specialty Chemical Stock Approaches Long-Term Support 👀

Recent Rout Brings $IREN Back To Key Trendline 🧐