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Today’s Summary
Monday, October 31st, 2022
Indices: Russell 2000 0.00% | Dow -0.39% | S&P 500 -0.75% | Nasdaq 100 -1.22%
Sectors: Energy was the only positive sector, gaining +0.84%. Communications lagged dropping -1.67%.
Commodities: Crude Oil futures moved lower by -1.56% to $86.53 per barrel. Gold futures fell -0.25% to $1,641 per ounce.
Currencies: The US Dollar Index rose +0.82%.
Crypto: Bitcoin fell -0.80% to $20,242. Ethereum fell -1.21% to $1,570.
Interest Rates: The US 10-year Treasury yield rose to 4.052%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
November historically has been a strong month for stocks.
In fact, the past 10 years it has been the best for stocks and in a midterm year it has been the second best (only October was better). pic.twitter.com/GBpKQlVO91
— Ryan Detrick, CMT (@RyanDetrick) October 31, 2022
Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). October certainly lived up to its reputation as a turnaround month. The Dow had its best month since 1976, rising 14%, while the S&P 500 rose about 8%. As we turn the calendar, Ryan points out that November has been the second-best month for the S&P 500 in midterm years. The S&P 500 hasn’t had back-to-back monthly gains in more than a year now. Will November change that?
Quote of the Day
“New bull markets often feature new leaders.”
– Walter Deemer
Top Links
Best October Since… – Bespoke
Bespoke breaks down how the major indices performed in October.
Biggie Smalls – All Star Charts
JC Parets takes a look at the recent outperformance from Small-Cap stocks.
Will Semiconductor Stocks Send a Trick or Treat Message to Tech Sector? – Kimble Charting Solutions
Chirs Kimble points out that Semiconductor stocks are at a key inflection point.
9 Reasons We May Have Seen The Bottom This Week – The Lund Loop
Brian Lund lays out 9 reasons the bottom might be in.
Trendlines over Headlines with Special Guest, Walter Deemer – The Chart Report
Check out the latest episode of Trendlines over Headlines! Walter Deemer joins us to discuss what investors can learn from the Go-Go years of the late 60s, and the high-flying growth stocks of the early 70s.
Top Tweets
The Dow's best month since 1976.
File that under stuff you definitely don't see in recessions?
— Callie Cox (@callieabost) October 31, 2022
Dow Jones Industrial Average — Up 14.0% in October
Best October ever (since inception in 1896) pic.twitter.com/sFj0WuWPGz— Jared Blikre (@SPYJared) October 31, 2022
Dow had its best monthly outperformance vs. the Nasdaq since February 2002 pic.twitter.com/6XYp6EpduP
— MicroSectors (@msectors) October 31, 2022
Huge monthly turnaround for the major index ETFs, but one trend continued… $QQQ last in Sept and Oct. pic.twitter.com/T8tZfY0aYr
— Frank Cappelleri (@FrankCappelleri) October 31, 2022
Value beat Growth by a big margin this month. pic.twitter.com/LHIhB8whch
— Eddy Elfenbein (@EddyElfenbein) October 31, 2022
The Dow is now on its 3rd meeting with its rate of trend and the 200d MA. Is it just another lower high, or does it finally break through?$DJIA $DJI $DIA pic.twitter.com/bxvB0E61Yo
— Ian McMillan, CMT (@the_chart_life) October 31, 2022
7% of S&P 500 members have made a new 52w high … not high relative to history but largest share since April pic.twitter.com/T7KNDuieuN
— Liz Ann Sonders (@LizAnnSonders) October 31, 2022
Several breadth thrust indicators have generated buy signals over the past few weeks. Below is another; the deGraaf Thrust Indicator. Out of 27 observations since 1976, 26 have been profitable 1 yr later – returning nearly twice buy/hold. Starting to see trend model confirmation. pic.twitter.com/plqa385E4I
— Day Hagan Asset Mgt (@DayHagan_Invest) October 31, 2022
10-day breadth at its highest level since October 2020 when "reopening" was the sentiment de jour, vaccine efficacy was emerging and stimulus was running rampant. pic.twitter.com/jdlZZiTzEY
— RenMac: Renaissance Macro Research (@RenMacLLC) October 31, 2022
Since the 2020 top, the QQQ has been sliding vs the equal-weight S&P, despite some upward attempts. Add this to the column for "average stocks" and take one away from "mega-caps." Chart h/t @StrategasRP pic.twitter.com/oMvBBmx9ad
— Liz Young (@LizYoungStrat) October 31, 2022
have a great day today pic.twitter.com/dVTWlsQ0hb
— Brian Shannon, CMT (@alphatrends) October 31, 2022
You’re all caught up now. Thanks for reading!