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Today’s Summary
Friday, October 20, 2023
Indices: Dow -0.86% | S&P 500 -1.26% | Russell 2000 -1.29% | Nasdaq -1.50%
Sectors: All 11 sectors closed lower for the second day. Consumer Staples led but still fell -0.39%. Tech lagged, dropping -1.69%.
Commodities: Crude Oil futures fell -0.33% to $88.08 per barrel. Gold futures rose +0.70% to $1,994 per oz.
Currencies: The US Dollar Index inched lower by -0.07% $106.16.
Crypto: Bitcoin rose +3.32% to $29,688. Ethereum rose +2.37% to $1,605.
Volatility: The Volatility Index rose +1.40% to a seven-month high of 21.70.
Interest Rates: The US 10-year Treasury yield fell to 4.918%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Featured chart.
To date Gold is forming an engulfing sweeping reversal month.
This is one of the most bullish charts I have seen in 48 years of trading$GC_F $GLD pic.twitter.com/IBGvNDBbkw— Peter Brandt (@PeterLBrandt) October 20, 2023
Today’s Chart of the Day was shared by Peter Brandt (@PeterLBrandt). Gold continued higher this week by +2.72% after rising +5.22% last week, marking the best two-week advance in over three years. Peter points out that this month’s candle is on track to engulf the prior six months of price action. It ran into resistance today at the July highs, around $2,000/oz., but still closed higher for the fourth consecutive session. $2,000 is the last hurdle before testing the all-time highs (around $2,090). Gold has also been surprisingly resilient to the recent strength in the US Dollar. Many have given up on the yellow metal, as it’s fumbled three opportunities to break out in the post-pandemic era (August ’20, March ’22, May ’23). Will the fourth attempt be the charm?
Quote of the Day
“Bear markets don’t determine who’s right. They determine who’s left.”
– Jon Boorman
Top Links
Average S&P 500 Stock Down 9.9% Since July Peak – Bespoke
Bespoke breaks down the strongest and weakest areas of the S&P 500 since the pullback began in late July.
So Then NOT Transitory – All Star Charts
JC Parets interprets the bond market’s message about inflation.
Things Change – Potomac
Dan Russo looks at the relationship between stocks and bonds.
No Market for Easy Labels – Hi Mount Research
Willie Delwiche highlights three technical developments to be aware of.
November Almanac: Historically a Top Month, but Softer in Pre-Election Years – Almanac Trader
Jeff Hirsch examines how stocks have historically performed in November.
Top Tweets
*S&P 500 WEEKLY PERFORMANCE HEAT MAP $SPY 🇺🇸🇺🇸
🟢TOP GAINERS:$NFLX +12.7%$T +7.1%$MCD +4%$KO +3.2%
🔴TOP LOSERS:$TSLA -15.6%$NVDA -9%$AXP -6.3%$MS -6% pic.twitter.com/ArvnlmKyI7
— Jesse Cohen (@JesseCohenInv) October 20, 2023
Ugly bearish engulfing candle in the $SPY this week. pic.twitter.com/2HVd73j3qM
— Michael Nauss, CMT, CAIA 🇨🇦 (@MichaelNaussCMT) October 20, 2023
$SPX Odd how this works sometimes, isn't it? pic.twitter.com/OQfU4ArDLI
— Pete Carmasino (@PeteCarmasino) October 20, 2023
This negative divergence debt for the DJIA is coming due pic.twitter.com/GyQInW1Dt2
— da Chart Life (@daChartLife) October 20, 2023
As long as these sectors are below resistance, it will be difficult for the broader market to make any major progress. pic.twitter.com/HZiJTi6e3Z
— Alfonso Depablos (@AlfCharts) October 20, 2023
IWM has broken its March 2023 “SVB bottom,” suggesting lethally unhealthy breadth among economically sensitive small caps. Will bullish percent indices seal the deal? pic.twitter.com/gJhJlDz2Qw
— Mark Ungewitter (@mark_ungewitter) October 20, 2023
$IWC Micro Caps
If you thought the Smalls $IWM were bad.. $IWC -13% ytd pic.twitter.com/684RZRUKXG
— Christian Fromhertz 🇺🇸 (@cfromhertz) October 20, 2023
#ES_F and #VIX pic.twitter.com/H9XXwObnbq
— Yuriy Matso (@yuriymatso) October 20, 2023
$TLT look at that volume last 4 weeks pic.twitter.com/KWLsiHIVtz
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) October 20, 2023
Following up the worst total return for bonds with the second-worst year in history?
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We spent much of last year pointing out the record losses in the bond market (red). However, the reversion to the mean that many expected in 2023 never materialized (blue).Bloomberg’s… pic.twitter.com/mE8sIdU5sP
— Jim Bianco (@biancoresearch) October 20, 2023
Gold has quickly rallied off its October lows, hitting its highest price since May: pic.twitter.com/S5tX1FAynY
— MicroSectors (@msectors) October 20, 2023
US dollar strengthening usually weighs on gold…but not this time. Gold's strength and resilience here is notable. pic.twitter.com/1GhL4ge1Ip
— Liz Young (@LizYoungStrat) October 20, 2023
Coiners getting excited…$BTCUSD $SPX pic.twitter.com/VUiM8zE0Of
— Ian McMillan, CMT (@the_chart_life) October 20, 2023
S&P 500 broke below the 200DMA for the first time since March. Hell is coming. Have a good weekend. pic.twitter.com/nZIAn6mlhN
— Ramp Capital (@RampCapitalLLC) October 20, 2023