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Today’s Summary
Monday, September 28th, 2020
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 410 points or 1.51%. The S&P 500 and Nasdaq rose 1.61% and 1.87%, respectively. Small-Caps outperformed, with the Russell 2000 gaining 2.40%.
Sectors: All 11 sectors closed higher. Financials led, rising 2.38%. Utilities lagged but still inched higher by 0.27%.
Commodities: Crude Oil futures gained 0.80% to $40.57 per barrel. Gold futures rose 1.06% to $1,886 per ounce.
Currencies: The US Dollar Index fell 0.33%.
Interest Rates: The US 10-year Treasury yield moved slightly lower to 0.653%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
FWIW $SPY pic.twitter.com/ehpWwz9YcR
— PivotAnalytics (@pivotanalytics) September 28, 2020
Today’s Chart of the Day was shared on Twitter by Petr of Pivot Analytics (@pivotanalytics). It’s a seasonal composite of the S&P 500 that compiles data from 2000-2019. October has a reputation for being a troublesome month for Stocks, especially in election years. Most of the seasonality stats you see out there use data that goes back to the 1950s. We all learned in Statisticstics 101 that a larger sample size is always preferable. But when you look all the way back to 1950, you have outliers that skew the data, such as the crash in October 1987. Petr offers a unique perspective on seasonality by only looking at data from the past two decades. In a comment to The Chart Report, Petr said, “I typically only look at more recent data when it comes to seasonality because markets change all too frequently. The world is a different place now than it was in the ’50s or even ’80s.”
Quote of the Day
“History doesn’t repeat itself, but it often rhymes.”
– Mark Twain
Top Links
2020 Weekday Market Performance – Bespoke
Here’s an interesting read from Bespoke. They examine which day of the week has been the best for the S&P 500 so far in 2020. Spoiler Alert: it’s Tuesday.
Stock Picker’s Market – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff review dozens of charts to highlight the strongest stocks, trends, and themes across the markets.
Don’t Trust The Bounce in Cruise Stocks, Trader Say After Analysts Call ‘Inflection Point” – CNBC
Craig Johnson of Piper Jaffray tells viewers to avoid buying Cruise Line stocks until they close above their respective 200-day moving averages.
Weekly S&P 500 #ChartStorm – TopDown Charts
The team at Topdown Charts shares ten charts to help make sense of the current market environment.
Price Price Baby – The Weekly Trend
In this podcast, David Zarling and Ian McMillan at Adaptiv discuss some of the most significant technical developments to keep an eye on in the near-term.
Top Tweets
The S&P 500's A/D reading today was +437; the strongest since April 17th. Pretty impressive.
— Bespoke (@bespokeinvest) September 28, 2020
Strong start to the week, sending $SPX back to the 20- & 50-day moving average and RSI back to the midpoint.
Watching if MAs bring in sellers or if we get a breakout. pic.twitter.com/JLBuC0p6cw
— Andrew Thrasher, CMT (@AndrewThrasher) September 28, 2020
S&P 500's 50-day moving average turns into resistance pic.twitter.com/owL6Y90pJS
— Sarah Ponczek (@SarahPonczek) September 28, 2020
The $SPX's gap higher is the second biggest bullish jump on the open in three months. We swung from the 100-day mov avg support to the 50-day mov avg resistance in just a few days time pic.twitter.com/iCofDttix7
— John Kicklighter (@JohnKicklighter) September 28, 2020
DOW leaving pretty island at the bottom of A B C correction down. pic.twitter.com/0ykgCCCB4e
— Linda Raschke (@LindaRaschke) September 28, 2020
The S&P 500 has closed lower 4 weeks in a row.
Just a friendly reminder that it's pretty rare for $SPX to close lower 5 weeks in a row.
Not out of the question, but we haven't seen it happen since May-June of 2011.
See for yourself – here's my go-to $SPX weekly chart ? pic.twitter.com/19HP4aFHWx
— Grayson Roze (@GraysonRoze) September 27, 2020
The odds of a short squeeze have increased! ht @sentimentrader pic.twitter.com/b4YYxWRsz9
— jeroen blokland (@jsblokland) September 28, 2020
$SMH Semis popping after taking a brief rest. Momentum looks to be alive again. pic.twitter.com/HI4i8Rmp4V
— Greg Rieben (@gregrieben) September 28, 2020
Semiconductors went out at new 20-year relative highs last week. (permabears, this is the part where you close your eyes) $SOX $SPX $TSM $INTC $NVDA $ASML $AVGO $QCOM $AMAT $TXN pic.twitter.com/Xi1qpYlja6
— J.C. Parets (@allstarcharts) September 28, 2020
Do markets care about debates?
I'm inclined to say no. Here was $SPX in 2016. What about volatility though? pic.twitter.com/3odMAWNe8x
— Michael Antonelli (@BullandBaird) September 28, 2020