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Today’s Summary
Monday, October 28th, 2019
Indices: US stocks kicked off the week on a positive note with the S&P 500 and Nasdaq closing at fresh all-time highs. The Dow Jones Industrial Average gained 133 points or 0.49%. The Nasdaq was the strongest of the major indices, advancing 1.01%. The Russell 2000 rose by 0.85%.
Sectors: Technology led for the third trading day in a row, gaining 1.27%. Utilities lagged, falling 1.37%.
Commodities: Crude Oil futures fell 1.36% to $55.83 per barrel. Gold futures were lower by 0.64% to $1,496 per ounce.
Currencies: The US Dollar Index slipped 0.09%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.846%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Still one of my favorite charts.
-If global stocks are at an all-time high at month end… own them.
-If not, own bonds (treasuries from 1970-76… the Agg after).Clear takeaway… DO NOT fear global markets at all-time highs. pic.twitter.com/5sxFrDG8Ra
— Jake (@EconomPic) October 28, 2019
Today’s Chart of the Day was shared on Twitter by @EconomPic. The chart compares the growth of $1 using three different investment strategies since 1970. The grey line is a traditional 60/40, stock/bond portfolio. The orange line is the MSCI World Index pre-1988 and $ACWI post-1988. The blue line represents buying global stocks if they close the month at all-time highs, and if they’re not at all-time highs, buying bonds instead. The chart provides a good illustration of the power of trend-following and is evidence that investors shouldn’t be afraid of the market hitting new all-time highs.
Quote of The Day
“When a market makes a historic high, it is telling you something. No matter how many people tell you why the market shouldn’t be that high or why nothing has changed, the mere fact that price is at a new high tells you something has changed.”
– Larry Hite (Trader)
Top Links
A Bullish Combination – The Chart Report
In this report, we explain why the combination of bearish sentiment and the market breaking out to new all-time highs could fuel the next leg higher.
Chart Analysts Say New Record Gives Investors the Green Light to Jump Back into Bull Market – CNBC
In this piece, several respected technical analysts share their thoughts on the market with the S&P 500 at record highs.
New Highs in the S&P 500 so Why Not in Transports? – Market Gauge
Michele Schneider argues that stocks aren’t out of the woods until Transports and Small-caps reach new highs.
Examining ETFs and the Communication Services Sector –The Final Bar
In this video, David Keller does a deep dive into the Communication sector and answers some questions on ETFs.
Momentum Monday – Is This The Start of a New Uptrend? – Howard Lindzon
Howard Lindzon and Ivanhoff go through dozens of momentum stocks to identify the strongest trends in the market.
Top 10 Tweets
The S&P 500 Index starts the week at another all time high! pic.twitter.com/4vHmdCaVK2
— jeroen blokland (@jsblokland) October 28, 2019
Stocks have mostly stayed positive after the Fed has previously cut rates at a new high. 1990 was the one exception . $SPX pic.twitter.com/o9nDqdUN8J
— Andrew Thrasher, CMT (@AndrewThrasher) October 28, 2019
seeing $NYSE new 52-week lows move down to the lows of 2019 this fall is #bullish for the market #MarketBreadthMonday pic.twitter.com/eA3Ug68glg
— David Cox, CMT, CFA (@DavidCoxWG) October 28, 2019
Bears complaining about 52wk Highs, but don't mention 52wk Lows are virtually zero (globally), and $MXWO is doing just fine all year.
Also as shown last week, with many Stocks about to break out, if this rally pushes just a bit more, New Highs will go into full expansion mode. pic.twitter.com/7O0PmebInf
— Macro Charts (@MacroCharts) October 28, 2019
The $SOX 3-Day % Ch = +6.4%, biggest since 7/22-24, when it last made a new high.
It topped out 2 days prior to the SPX back then.
Is it different this time?#markets pic.twitter.com/IZboaLPPJZ
— Frank Cappelleri (@FrankCappelleri) October 28, 2019
Carter Worth is a seller of $ITB here as it "hits its head" at resistance. #stocks #homebuilders pic.twitter.com/jGpBdcpvI1
— Cornerstone Macro (@csm_research) October 28, 2019
Massively oversold and turning up from bottom of the range. Top of the range (?) @ 2.5% pic.twitter.com/0jPFNBOmP4
— Wolfe Daily Howl (@WolfeDailyHowl) October 28, 2019
Tentative breakout $TNX pic.twitter.com/XM1muBVBhV
— Michael Kahn, CMT (@mnkahn) October 28, 2019
S&P 500 closed at a new all-time high and given the broad participation, seems decisive.
– if markets follow path of 3 precedent ‘markets to nowhere’ this is good news for equity investors.
– avg gain is 51% over next 2 years. Means 2019 looks like the start of new bull#BTD pic.twitter.com/fGcV7FP5gf
— Thomas Lee (@fundstrat) October 28, 2019
October 28th might have the best avg return per day for the S&P 500, but did you know that November 14 has the most new highs ever at 11? pic.twitter.com/1wMEVBMbLB
— Ryan Detrick, CMT (@RyanDetrick) October 28, 2019
Upcoming Events
Monday, October 28th – United Kingdom Chapter Meeting featuring Ralph Acampora, CMT
You’re all caught up now. Thanks for reading!