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Today’s Summary
Monday, October 25th, 2021
Indices: Dow +0.18% | S&P 500 +0.47% | Nasdaq +0.90% | Russell 2000 +0.93%
Sectors: 8 of the 11 sectors closed higher. Consumer Discretionary led, gaining 2.48%. Utilities lagged, falling 0.43%.
Commodities: Crude Oil futures were flat (0.06%) and continue to trade at $83.71 per barrel. Gold futures rose 0.70% to $1,809 per ounce.
Currencies: The US Dollar Index gained 0.23%.
Interest Rates: The US 10-year Treasury yield ticked slightly lower to 1.633%.
alling to 1.636%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$TSLA above $900 to ATHs. Bears won't want to hear this, but there's a very good chance this one keeps going. As mentioned on @cvpayne a few months back, I have a $1300 price target on this stock by August 2022. Will we make it? Who knows. But we are off to a good start. pic.twitter.com/JgD9YNh7Ad
— Ian McMillan, CMT (@the_chart_life) October 25, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a daily candlestick chart of Tesla ($TSLA) over the past 2.5 years. This was easily the most talked-about stock today as it broke out to an all-time high and joined the $1 trillion market cap club. This wasn’t just any old breakout, it was a breakaway gap, which is when price gaps above a significant resistance level and continues higher. Breakaway gaps are often found at the beginning of a new trend. It’s also worth noting that the stock has formed a solid 10-month base to launch higher from. To be fair, it may be hard to trade this breakout given today’s 12% move. But after going sideways all year, this looks like the beginning of a new leg higher for the world’s most contested automaker.
Quote of the Day
“Fundamentalists who say they are not going to pay any attention to the charts are like a doctor who says he’s not going to take a patient’s temperature.”
– Bruce Kovner
Top Links
New Highs are Bullish, More are Likely on the Horizon – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Welcome to the Trillion Dollar Club, Tesla – Bespoke
Bespoke examines how other Mega Cap stocks performed after reaching $1 trillion in market cap like Tesla did today.
Stocks Could See Continued Gains in a Low-Volatility Environment if the Market’s Fear Gauge Breaks This Key Level – Business Insider
Katie Stockton offers her technical perspective on the VIX.
Is It Transitory or Not? – The Weekly Trend
In this podcast, David Zarling, Ian McMillan, and Dan Gorghuber discuss some of the most important technical developments.
Gold Update – AlphaCharts Blog
Brian G. gives an update on precious metals and mining stocks.
Top Tweets
Just like we always learned, $SPX takes the stairs down and the elevator up pic.twitter.com/Xv2lCt7CKk
— David Settle, CMT (@davidsettle42) October 25, 2021
$SPY A/D line confirming new highs on the price index. pic.twitter.com/mtY3GS4x4u
— Bailey.Baxter2020 (@BBaxter2020) October 25, 2021
Lots of talk about how resilient “the market” has been this year; reality is 91% of S&P 500 have had at least a 10% correction from their highs YTD … avg drawdown has been -18%; so headline/index “strength” has masked incredible churn beneath surface (especially for NASDAQ & R2) pic.twitter.com/z4UrwsMRik
— Liz Ann Sonders (@LizAnnSonders) October 25, 2021
Most don't realize this, but your average stock actually peaked months ago and is just now starting to breakout. pic.twitter.com/epubzfLnoh
— Ryan Detrick, CMT (@RyanDetrick) October 25, 2021
Consumer Discretionary led today, up 2.1% thanks to Tesla (+12.9% and makes up more than 10% of the sector). pic.twitter.com/V65BbF06Pf
— Liz Young (@LizYoungStrat) October 25, 2021
US Grain markets could be setting up for a rally into the end of the year. $KE_F, $MWE_F, $ZC_F, $ZS_F, $ZL_F pic.twitter.com/1Z3KAs2XZl
— Ian Culley (@IanCulley) October 25, 2021
$MOO Weekly. Agribusiness ETF breaking out of a 5-month base. pic.twitter.com/U4SrH3DgBR
— Brian G (@alphacharts) October 25, 2021
"Parabolic advances usually go further than you think, but they do not correct by going sideways." — Bob Farrell's Rule #4 pic.twitter.com/ldTOXqsGa8
— Walter Deemer (@WalterDeemer) October 25, 2021
The Trillion Dollar Market Cap Club just gained a new member in $TSLA. $FB was apparently booted to make room. pic.twitter.com/jgbAnhWQPK
— Sean Brown (@Sean_YCharts) October 25, 2021
Wild $T1mes!
— Elon Musk (@elonmusk) October 25, 2021
You’re all caught up now. Thanks for reading!