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Today’s Summary
Tuesday, November 1st, 2022
Indices: Russell 2000 +0.25% | Dow -0.24% | S&P 500 -0.41% | Nasdaq 100 -1.02%
Sectors: 5 of the 11 sectors closed higher. Energy led, gaining +0.97%. Consumer Discretionary lagged dropping -1.01%.
Commodities: Crude Oil futures rose +2.13% to $88.37 per barrel. Gold futures gained +0.55% to $1,650 per ounce.
Currencies: The US Dollar Index was flat.
Crypto: Bitcoin was unchanged at $20,492. Ethereum rose +0.52% to $1,582.
Interest Rates: The US 10-year Treasury yield inched lower to 4.046%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
This market is one of the most misaligned…
While Dow Jones recovered 50% of its 2022 drop, Nasdaq retraced only 10%.
We now operate in 2 parallel realities… pic.twitter.com/yLlXqQeO42
— Yuriy Matso (@yuriymatso) November 1, 2022
Today’s Chart of the Day was shared by Yuriy Matso (@yuiriymatso). It’s a tale of two indexes. The Dow had a record-breaking month in October, gaining 14%. However, the Nasdaq wasn’t nearly as impressive, gaining just 4%. Yuriy points out that the Dow has retraced 50% of its decline, while the Nasdaq has only retraced 10%. The Dow simply has more exposure to what’s working (Industrials, Financials, Health Care, Energy), and less exposure to what’s not working (Tech and Communications). On the other hand, the Nasdaq is heavily weighted toward those laggards. Now just imagine if they hadn’t kicked Exxon out of the Dow a couple of years ago…
Quote of the Day
“In the end, winning is sleeping better.”
– Jodie Foster
Top Links
The Best October for the Dow Ever – Carson Group
Ryan Detrick examines the Dow’s record-breaking performance in October and what it could mean for November.
Wild Monthly Moves – Bespoke
Bespoke takes a look at the large monthly gains/losses that we’ve had in the S&P 500 this year.
The Focus Remains on Relative Strength – Research by Potomac
Dan Russo analyzes all 11 sectors of the S&P 500.
Visualizing S&P 500 Performance in 2022, by Sector – Visual Capitalist
Here’s a cool visual showing how the sectors of the S&P 500 have performed this year.
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/wxQ4JS0u6s
— *EVAN BLOOMBERG (@StockMKTNewz) November 1, 2022
Quite the performance gap between major indexes … YTD S&P 500 (blue) is down by 19%, NASDAQ (orange) is down by 30%, Russell 2000 (white) is down by 18%, and Dow (purple) is down by 10%
[Past performance is no guarantee of future results] pic.twitter.com/Oi9sW2n6sM— Liz Ann Sonders (@LizAnnSonders) November 1, 2022
The NYSE FANG+ index returned -6.4% in Oct vs the equal-weight S&P 500 at +9.7%. That's the largest underperformance spread since data began in late '14. FANG+ is not ALL of the big stocks, but I do expect leadership to skew toward the "average" stocks for a while. pic.twitter.com/Opq7HvuN4I
— Liz Young (@LizYoungStrat) November 1, 2022
Nasdaq 100 ex-Tech is attempting to break above its 200-day MA with relative performance making a 17-month high$QQXT pic.twitter.com/5dK6D8fa53
— Andrew Thrasher, CMT (@AndrewThrasher) November 1, 2022
Energy sector closes October with the highest weighting in $SPY since March 2019 pic.twitter.com/JcYWX8I7oO
— MicroSectors (@msectors) November 1, 2022
Here's a look at S&P sector ETF total returns since Election Day 2020. Anything stand out? pic.twitter.com/HRMTZv9Ry2
— Bespoke (@bespokeinvest) November 1, 2022
In August 2020, Exxon was removed from the Dow and Salesforce was added to the index.
Total Returns since…
Exxon $XOM: +219%
Salesforce $CRM: -43%Charting via @ycharts pic.twitter.com/b2IQqKxkV8
— Charlie Bilello (@charliebilello) November 1, 2022
You might think Insurance is boring, but that was the largest 1mo % gain since Oct 2011 @ 14.99%. Relative performance lifting off from the long-term breakdown zone. One of the better looking charts in this environment.. $IAK $SPX $SPY pic.twitter.com/3OLb4Qaq5n
— Drew Wells, CMT, CIMA® (@DrewTheCharts) November 1, 2022
As long as #Bitcoin and #Ethereum remain above their prior cycle highs from 2017, the world is not coming to an end for cryptos. pic.twitter.com/KWpZv0X7PT
— Alfonso Depablos (@AlfCharts) November 1, 2022
Rest up, fam.
Tomorrow is Fed day, and we've seen some of the biggest Fed day market swings of the past two decades this year (second only to 2008) pic.twitter.com/3yeJhrfaty
— Callie Cox (@callieabost) November 1, 2022
You’re all caught up now. Thanks for reading!