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Today’s Summary
Monday, October 26th, 2020
Indices: US Stocks closed lower to start the week with the Dow Jones Industrial Average dropping 650 points or 2.29%. The S&P 500 and Nasdaq fell 1.86% and 1.64%, respectively. The Russell 2000 moved lower by 2.15%.
Sectors: All 11 sectors closed lower. Utilities led, closing more or less flat – 0.03%. Energy lagged, dropping 3.59%.
Commodities: Crude Oil futures moved lower by 3.24% to $38.56 per barrel. Gold futures were unchanged and continue to trade around $1,906 per ounce.
Currencies: The US Dollar Index rose 0.35%.
Interest Rates: The 10-year US Treasury yield fell to 0.801%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Ran-dumb:
When $SPX kicks off the trading week declining between -1.5% to -3%, what's the rest of the week looked like?
It looks to me like the Bulls land a nice counter punch more often than not.
Fun rest of the week awaits. pic.twitter.com/KCErLvGN0D
— Steve Deppe, CMT (@SJD10304) October 26, 2020
Today’s Chart of the Day was shared on Twitter by Steve Deppe (@SJD10304). The S&P 500 kicked off the week on a sour note today, dropping 1.86%, marking the worst day in just over a month. Despite the bearish start, Steve points out that it wouldn’t be surprising to see bulls regain some control in the remainder of the week. The table shows all the prior instances over the past decade, where the S&P 500 dropped between 1.5% and 3% to start the week. On average, the next few days have been positive more often than not. Four days later, the index was higher 73% of the time for an average gain of 1.62%. As a reminder, this is not intended to be a prediction but rather an illustration of what is possible and probable based on historical data.
Quote of the Day
“Once the game is over, the king and the pawn go back in the same box.”
– Italian Proverb
Top Links
Nasdaq vs. Dow Outperformance – Bespoke
Bespoke examines the wide disparity between the Nasdaq and the Dow so far in 2020.
The Best Day of the Year is This Week – LPL Financial Research
The team at LPL Financial Research points out that, on average, October 28th has been the best day for the S&P 500 over the past 70 years.
No One Knows, Not Even You – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most significant technical developments to keep an eye on, including the strength in Small-Caps, Copper, and Chinese Stocks.
Big Tech Reports Earnings – Momentum Monday
In their weekly video, Howard Lindzon and Ivanhoff highlight some of the strongest stocks, trends, and themes across the markets.
7 Ways to Deal with Stock Market Noise – Rieban Financial
As we approach the election, Greg Rieben offers seven helpful ways to tune out the noise.
Top Tweets
S&P 500's 50-day moving average is back in the game pic.twitter.com/c1qD0UQvAF
— Sarah Ponczek (@SarahPonczek) October 26, 2020
Much to observe here…
– $SPX "dunked" under water, just below the 50MA
– 50MA also coincides w/ the pre-COVID Feb highs
– A potential "floor" of support lies at the YTD levels
– While momentum remains very much in a positive range.
Don't let the financial news spook you. pic.twitter.com/K5iti4e4K1
— Adam D. Koós, CFP®, CMT (@AdamKoos) October 26, 2020
$QQQ closed below 50RSI, and on higher volume. pic.twitter.com/buYO7qhiNn
— Rolando Santos ? (@TKPTrader) October 26, 2020
The $VIX has spent 172 consecutive trading days above the 20 handle, the longest streak since 331 trading days in 2008-09. pic.twitter.com/porh58wXwU
— MicroSectors (@msectors) October 26, 2020
The popular bet lately has been to bet that volatility collapses post-election. $VIX puts make up 60% of total volume, the highest level in the last couple of years.
h/t @themarketear pic.twitter.com/mt5qZLzBp1— Andrew Thrasher, CMT (@AndrewThrasher) October 26, 2020
$DXY dollar update. pic.twitter.com/2hSzwEmm9Z
— Jason (@JasonPerz138) October 26, 2020
$TLT recapturing the prior swing low pic.twitter.com/TpbRgBIGdw
— ATMbiotechCharts (@ATMcharts) October 26, 2020
TLT Weekly Chart: Stochastics oversold. RSI in Bullish Range. MACD above zero. ? #bonds $TLT #Bondmarket pic.twitter.com/PXsrHTttkE
— Mike Moses, CMT (@DominickMike) October 26, 2020
Latin America has easily been one of the worst regions in the World, but could it be the new beneficiary in a higher rates environment?
Considering $EEM weighting in Tech/Consumer and $ILF weighting in Financials and Materials, does Latin America finally begin outperforming EM? pic.twitter.com/kFHuy9wjjs
— Louis (@haumicharts) October 26, 2020
Maybe these have something to with why $SOCL's relative chart looks so good? $PINS $SNAP $SPOT. pic.twitter.com/ESEXj9WEql
— Pratyush Tulsian (@PrattyCharts) October 26, 2020
If you’ve had some rough Monday’s lately, you’re not alone.
The S&P 500 has moved 1% or more on the last seven Mondays. Outside of April, that’s the longest streak since December 2008 (and sixth-such streak since 1939).
?
— Callie Cox (@callieabost) October 26, 2020