Sponsored By:
Today’s Summary
Friday, October 9th, 2020
Indices: US Stocks ended the week on a positive note with the Dow Jones Industrial Average closing up 161 points or 0.57%. The S&P 500 and Nasdaq rose 0.88% and 1.39%, respectively. The Russell 2000 ended a six-day streak of outperformance but still gained 0.55%.
Sectors: Technology led, rising 1.53%. Energy lagged, falling 1.60%.
Commodities: Crude Oil futures fell 1.43% to $40.60 per barrel. Gold futures moved higher by 1.47% to $1,926 per ounce.
Currencies: The US Dollar Index dropped 0.55%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.780%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Another breadth thrust signal today: >90% stocks >10-day moving averages. A lot of good technical readings this week. @NDR_Research pic.twitter.com/A0LTjogCOv
— Ed Clissold (@edclissold) October 9, 2020
Today’s Chart of the Day was shared on Twitter by Ed Clissold of Ned Davis Research (@edclissold). There were quite a few bullish technical developments this week. We saw fresh all-time highs from bellwether industry groups including Transports, Semiconductors, and Home Builders. More notably, market internals improved dramatically. The Advance/Decline line hit an all-time high, and we saw several positive breadth thrusts. Ed points out that one of those breadth thrust signals occurred today when the percentage of S&P 500 stocks above their 10-day moving averages rose above 90% (after falling to at least 10% first). As you can see from the arrows on the chart, these signals are typically associated with lows. Take a look at the statistics in the top left corner. The S&P 500 has historically seen above-average returns in both the short and long-term after this signal has fired.
Quote of the Day
“It’s not what you look at that matters, it’s what you see.”
– Henry David Thoreau
Top Links
The Market’s Sleight of Hand – Macro Ops
Alex Barrow analyzes sentiment and positioning within the stock market right now.
Transportation Stocks are Confirming More Bullish Action Ahead – StockCharts.com
Tom Bowley explains that the recent action in Transportation stocks is bullish for the broader market.
Stock Market Video Analysis for Week Ending 10/9/20 – AlphaTrends.net
Brian Shannon gives a quick recap of this week’s price action and highlights some levels of interest to keep an eye on next week.
Buyers Have Come for the Little Guys – SentimenTrader
Jason Goepfert of SentimenTrader weighs-in on the recent strength in Small-Cap stocks.
New High for Net New Highs – Bespoke
Bespoke points out that there has been a significant uptick in the net percentage of new 52-week highs.
Top Tweets
Weak breadth and only tech stocks are pulling things higher they tell us.
Yesterday these advance/decline lines all made new all-time highs:
NYSE
Dow
Mid Cap
S&P 500
Nasdaq
Nasdaq 100
S&P 100Also transports made a new all-time high.
This isn't bearish action imo.
— Ryan Detrick, CMT (@RyanDetrick) October 9, 2020
Breadth expansion helps preserve a strong tape – we're seeing breakouts not only in winning sectors like software (e.g. $PAYC) but also in lagging sectors like financials (e.g. $IVZ) #fairleadstrategies
— Katie Stockton, CMT (@StocktonKatie) October 9, 2020
The S&P 500 closed up for the 2nd week in a row (woo!)
It also closed:
✅ +8.34% above the September 24th low
✅ Cleanly above the 50-day
✅ Right at the top of its 20-period Bollinger Band pic.twitter.com/7GKbnOPs0Z— Grayson Roze (@GraysonRoze) October 9, 2020
90% of Nasdaq 100 members above their 200-day moving average for the first time since 2013 h/t @FrankCappelleri pic.twitter.com/nrm4x5XSE9
— Sarah Ponczek (@SarahPonczek) October 9, 2020
Breadth doesn't seem to be as much of a concern anymore. pic.twitter.com/pBlPKcIWma
— Dan Russo, CMT (@DanRusso_CMT) October 9, 2020
Market no longer has halitosis: pic.twitter.com/ZP3XKGwqNw
— Walter Deemer (@WalterDeemer) October 9, 2020
Ran-dumb:
Historically speaking, 10 day price thrusts in October are a damn good sign of even higher prices in November.
Here are all instances of the S&P 500 gaining 5% or more over a two week stretch for all weeks ending in October.
Undefeated 1 month later. pic.twitter.com/tdSwsLZyv8
— Steve Deppe, CMT (@SJD10304) October 9, 2020
Solar Index vs Energy Index with % spread above/below 200 DMA ?$TAN $XLE pic.twitter.com/oIG1tacutW
— Jonathan Krinsky,CMT (@jkrinskypga) October 9, 2020
Largest weight in Russell 2000… small-cap Biotech has broken out. pic.twitter.com/Xx0lcCcmRF
— Strategas (@StrategasRP) October 9, 2020
In a recent note to clients, we posed the question which way will this Global Equity Index resolve..? $IOO
For now, it's looking a lot like the latter scenario ? pic.twitter.com/0e9XafSl3o
— Steven Strazza (@sstrazza) October 9, 2020
S&P Retail $XRT breaking out of a 5-year base and making new all-time highs ? pic.twitter.com/DeXOgzMOzn
— R. Alfonso Depablos (@AlfCharts) October 9, 2020