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Today’s Summary
Tuesday, October 6th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 376 points or 1.34%. The S&P 500 and Nasdaq dropped 1.40% and 1.57%, respectively. Small-Caps led for the fourth straight day but still slipped 0.30%.
Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector to close higher, gaining 0.85%. Communications lagged, falling 2.10%.
Commodities: Crude Oil futures moved higher by 3.70% to $40.67 per barrel. Gold futures dropped 1.92% to $1,882 per ounce.
Currencies: The US Dollar Index rose 0.43%.
Interest Rates: The US 10-year Treasury yield fell to 0.732%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Everyone is talking about Trump this Trump that.. deal here and another deal over there.. but all I see is a rejection of resistance and price looks to be within a ranging market (3220 – 3400) $SPY #SPX #Stocks pic.twitter.com/QS8WUnESxC
— Grant Hawkridge (@granthawkridge) October 6, 2020
Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). It’s a daily candlestick chart of the S&P 500, year-to-date. Grant points out that the S&P 500 is stuck in a trading range between the February highs (around 3400) and the June highs (around 3220). Trendless price action like this can be frustrating for both the bulls and bears. This is an especially light week in terms of economic data, Fedspeak, and earnings. As a result, everyone is focused on the news flow. As we mentioned on Friday, Price is the only truth in markets. Everything else is just stories, opinions, or noise. It’s easy to get caught up in these headlines, but price is the only thing that will make or lose you money at the end of the day. So tune out the noise and focus on what matters. The levels are clearly defined. If we’re above the February highs, the risk is to the upside, and if we’re below the June highs, the risk is to the downside. But as long as we’re stuck between these two key levels, expect the chop to continue.
Quote of the Day
“Rock stars come and go. Musicians play until they die.”
– Eddie Van Halen
Top Links
This Technical Indicator Just Hit Record Highs, Suggesting More Upside Ahead for the S&P 500 – Business Insider
This article from Business Insider spotlights new highs in the Advance/Decline line.
Relative Strength Reversal? – Bespoke
Bespoke analyzes the relative strength trends of each sector.
Willie Delwiche Talks Technical Indicators on the S&P 500 to Monitor – TD Ameritrade
In this clip, Willie Delwiche offers his technical perspective on the S&P 500.
Are We Seeing Significant Rotation? Check Out These 3 Industry Groups – StockCharts
Tom Bowley takes a look at three industry groups that are attempting to break out.
Inflation Confirmation? – Marea Market Musings
Dan Russo shares his thoughts on the reflation trade.
Top Tweets
Bearish outside reversals in S&P500 have bigger barks than bites historically. Prior to today's, $SPX has 61 days where it made new 20-day high only to close below yest's low since '90. Stats attached but next day to 10 days out all had more rallies than falls on closing basis pic.twitter.com/kA3sFJl7ke
— Michael McKerr (@MikeMcKerr_TDA) October 6, 2020
January lows strike again $IWM pic.twitter.com/cuaLyYlzn0
— PivotAnalytics (@pivotanalytics) October 6, 2020
seeing the $SPX advance/decline making new highs ahead of price is not bearish… pic.twitter.com/hufQdpzv0c
— David Cox, CMT, CFA (@DavidCoxWG) October 6, 2020
That's $XLU up 5 straight, and 8 of the last 9, as it seeks to pass go and collect $200. pic.twitter.com/3FEVX7qAqS
— Steve Deppe, CMT (@SJD10304) October 6, 2020
Biotech remains long-term attractive, in our view. $XBI $IBB pic.twitter.com/mPQTQUzIeu
— Mark Ungewitter (@mark_ungewitter) October 6, 2020
What a difference a week makes. Crude #oil is up 10% this week. pic.twitter.com/LUVaY83btR
— jeroen blokland (@jsblokland) October 6, 2020
The reflation trade can perhaps best be seen in the longest-dated Treasuries, which continue to sell off disproportionately, with 30-year yields rising to the highest since June. This is leading to the widest gap between 30-year and 10-year yields since 2016. pic.twitter.com/1trSrhsRBr
— Lisa Abramowicz (@lisaabramowicz1) October 6, 2020
$TLT #rates — TLT 4-year PEAK cycle …….. pic.twitter.com/NLyfd0yjer
— Nautilus Research (@NautilusCap) October 6, 2020
truly extraordinary how the tweet hits precisely at $NDX resistance and $DXY support. Yet another casualty of 2020: I am at risk of being radicalized into a technician pic.twitter.com/DG0TGxdYSM
— Oliver Renick (@OJRenick) October 6, 2020
Good luck with your #SoberOctober with the VIX still above 25.
— Ian McMillan, CMT (@the_chart_life) October 6, 2020