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Today’s Summary
Thursday, October 27th, 2022
Indices: Dow +0.61% | Russell 2000 +0.11% | S&P 500 -0.61% | Nasdaq 100 -1.88%
Sectors: 6 of the 11 sectors closed higher. Industrials led, gaining +1.17%. Communications lagged, dropping -4.74%.
Commodities: Crude Oil futures rose +1.33% to $89.08 per barrel. Gold futures slipped -0.22% to $1,666 per ounce.
Currencies: The US Dollar Index rose +0.80%.
Crypto: Bitcoin fell -2.50% to $20,256. Ethereum moved lower by -3.61% to $1,510.
Interest Rates: The US 10-year Treasury yield dropped to 3.923%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$IWM $RTY $RLV if you like the relative strength breakout in small caps, note the strong correlative this ratio has to the Russell 1K (large cap) Value / Growth ratio (RLV / RLG). Value outperformed Growth for straight 6yrs starting in 2000. #Value pic.twitter.com/vFNcAfRNKX
— brian.joyce.nasdaq (@Nasdaqbjoyce) October 27, 2022
Today’s Chart of the Day was shared by Brian Joyce (@Nasdaqbjoyce). The chart shows two ratios; the Russell 2000 vs. the S&P 500 (top), and Value vs. Growth (bottom). The Russell 2000 broke out to a fresh year-to-date high vs. the S&P 500 today. Brian points out that these two ratios are highly correlated. Therefore, if the Russell 2000 continues to outperform the S&P 500, Value will likely continue to outperform Growth.
Quote of the Day
“After a stock market decline, people may perceive more risk than before when, in fact, the decline may have taken some of the risk out of the market.”
– Robert Shiller
Top Links
Grandad Russell 2000 Leads This Stock Market Rally – StockCharts
Mish Schneider looks at the recent outperformance from Small-Cap stocks.
November is Top NASDAQ Month in Midterm Years – Almanac Trader
Seasonality expert, Jeff Hirsch examines how Stocks have historically performed in November.
The Riskest Bonds Look Best – All Star Charts
Ian Culley takes a look at a potential reversal in the High Yield Bond ETF, $HYG.
What is a “Breadth Thrust” and What are the Risks? – Research by Potomac
Drew Wells lays out everything you need to know about breadth thrusts.
Hi Yo Silver Time for Silver Mining Stocks – Kimble Charting Solutions
Chris Kimble points out that the Silver Miners ETF, $SIL, is attempting to break out.
Top Tweets
Today's close will look very different to tomorrow's open pic.twitter.com/OKAch122QY
— Stock Market News – Evan (@StockMKTNewz) October 27, 2022
here's what the stocks that aren't large-caps have been doing since the new lows list peaked in June pic.twitter.com/abWchOCHpc
— J.C. Parets (@allstarcharts) October 27, 2022
? $RUT $SPX pic.twitter.com/qkVxhsW0lT
— Shane C. Murphy (@murphycharts) October 27, 2022
#IWM, weekly
'Resistance turned into support' pattern.
Ultimately, for the market to tank like in 2008, the Russell index would have to drop below the June-September support line. pic.twitter.com/Laka55CZOw
— Yuriy Matso (@yuriymatso) October 27, 2022
For a generation of investors, Tech leadership is a default assumption.
But trend has favored $SPX > $NDX since Aug 2021 and it doesn't look like it's fading. https://t.co/1ZwcfAqBj2 pic.twitter.com/xgnLMf8UI4
— Willie Delwiche, CMT, CFA (@WillieDelwiche) October 27, 2022
Are we looking at a potential failed break down this week in the beaten up Transport stocks? $IYT $DJT pic.twitter.com/u3xs0WgBeC
— Sam McCallum (@Honeystocks1) October 27, 2022
$SIL quietly nearing a breakout attempt. pic.twitter.com/lc2OG9Uryi
— Frank Cappelleri (@FrankCappelleri) October 27, 2022
USD resilient today $UUP pic.twitter.com/YOWUVFABjB
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 27, 2022
FANG Innovation Index component $META has 2nd worst day ever. pic.twitter.com/bv4wAcnQ0f
— MicroSectors (@msectors) October 27, 2022
Lots of talk about how Meta’s (Facebook’s) decline is not weighing on broader indexes, but perhaps one reason is its weight in S&P 500 has dropped from 2.9% to 1%
[Past performance is no guarantee of future results; individual stock shown for illustration purposes] pic.twitter.com/vZLyEfiJFN— Liz Ann Sonders (@LizAnnSonders) October 27, 2022
Here is the 15-minute chart of Nasdaq futures with the impact of after-hours earnings releases (read: misses) from $GOOG, $META and now $AMZN. $NQ_F pic.twitter.com/IWMzPaTFrP
— John Kicklighter (@JohnKicklighter) October 27, 2022
It hasn't been a great week for tech giants ? https://t.co/srdKCiI9sQ pic.twitter.com/78euwuKcFw
— Bloomberg (@business) October 27, 2022
You’re all caught up now. Thanks for reading!