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Todayās Summary
Thursday, November 2, 2023
Indices:Ā Russell 2000Ā +2.67%Ā | S&P 500Ā +1.89%Ā |Ā NasdaqĀ +1.74%Ā |Ā DowĀ +1.70%
Sectors: All 11 sectors closed higher by more thanĀ +1%. Real Estate led, gainingĀ +3.10%. Consumer Staples lagged but still roseĀ +1.30%.
Commodities: Crude Oil futures gainedĀ +2.51%Ā to $82.46 per barrel. Gold futures roseĀ +0.30%Ā to $1,994 per oz.
Currencies: The US Dollar Index droppedĀ -0.48%Ā to $106.16.
Crypto: Bitcoin fellĀ -1.42%Ā to $34,937. Ethereum droppedĀ -2.51%Ā to $1,801.
Volatility: The Volatility Index fellĀ -7.18%Ā to 15.65.
Interest Rates: The US 10-year Treasury yield dropped to 4.661%.
Here areĀ the best charts, articles, and ideas shared on the web today!
Chart of the Day
With a +2.67% pop, the Russell 2000 $IWM just printed its second largest single-day gain of the year
Only session with a bigger move so far in 2023 was June 2nd (+3.63%)
KEY QUESTION āĀ will this week's price action materialize into a false breakdown for Small Caps? š pic.twitter.com/j6lccwEVex
— Grayson Roze (@GraysonRoze) November 2, 2023
Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze). The Russell 2000 ($IWM) made a new bear market lowĀ last weekĀ after breaking crucial support. However, $IWM is rocketing higher this week and repairing broken support. Grayson points out that today was the second-best day of the year for Small-Caps, with $IWM gainingĀ +2.67%.Ā The next objective for the bulls will be reclaiming the year-to-date lows, around $170, as this would further confirm aĀ failed breakdown. Breadth data would likely improve dramatically if Small-Caps continue to rebound. Remember,Ā Small-Caps have historically outperformedĀ in the final months of the year.
Quote of the Day
āThere will always be bull markets
followed by bear markets
followed by bull markets.ā
ā Sir John Templeton
Top Links
Potentially Bullish Observations on Small Caps – Nautilus Research
Nautilus Research highlights two potential tailwinds for the Russell 2000.
Keep ’em Guessing – Trading Adventures
Andy Moss breaks down recent price action in the major indices.
Bears Shrug Off a Rally – Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
Bonds Respond to Powellās Remarks – All Star Charts
Ian Culley examines the short-term and long-term outlook for Bonds.
Consumer Discretionary Sector Deep Dive – Grindstone Intelligence
Austin Harrison looks at how the Consumer Discretionary sector has held up amid the recent correction in the broader market.
Top Tweets
$SPY $SPX #SPY Talk about volume shelf turned launchpad through the volume gap…
Wowzers. pic.twitter.com/RizT8S23kI
— Jake Wujastyk (@Jake__Wujastyk) November 2, 2023
The best five days of the year are the five trading days after October 27th.
Huge gains the first four days, with one more to go tomorrow.
Hmm š pic.twitter.com/rZclbN7rya
— Ryan Detrick, CMT (@RyanDetrick) November 2, 2023
$SPX The current 4-day winning streak vs. the others in '23. pic.twitter.com/nl3kmHBkvA
— Frank Cappelleri (@FrankCappelleri) November 2, 2023
Bear market rallies are the three S's:
– sudden
– severe
– seductive
I'm inclined to label this a bear market rally until we start breaking above trendline and cloud resistance. $SPX $SPY pic.twitter.com/ebJ1qZAdCQ— David Keller, CMT (@DKellerCMT) November 2, 2023
you didn't sell into the hole because the angry man on twitter told you a crisis was coming did you? pic.twitter.com/h76ZvuA5cD
— J.C. Parets (@allstarcharts) November 2, 2023
#NQ_F, 4hr
A Bear Trap is in place. What happens next is important — if NQ moves above 15400, the odds of a new all time high by the end of 2023 – early 2024 will substantially increase. pic.twitter.com/qyhB0ckE1n
— Yuriy Matso (@yuriymatso) November 2, 2023
This is the 24th time the Russell 2000 closed at a 52-week low, then surged to its best 4-day rally in at least 3 months.
A year later, the small-cap index was higher 100% of the time with a median return of +25.6%. pic.twitter.com/gZNTBECMO9
— Jason Goepfert (@jasongoepfert) November 2, 2023
Obvious place to rally after long period of underperformance, but keep thinking about 1972 when the Nifty Fifty went up but almost nothing else did. That ended badly, so R2K needs to stage a decent rally here to eliminate the analogy. This may thus be most important chart of all. pic.twitter.com/knOaxz0Wlc
— Walter Deemer (@WalterDeemer) November 2, 2023
Don’t just focus on $IWM. $MID and $SML performing much better than $IWM, which has more unprofitable companies than $SML. $MID and $SML are into relative support while $IWM has violated LT rel support. pic.twitter.com/bB4HLCsxBw
ā Cam Hui, CFA (@humblestudent@toot.community) (@HumbleStudent) November 2, 2023
This chart sums up the market in 2023.
By total returns YTD:
ā¢ S&P 50: 26%
ā¢ S&P 100: 20%
ā¢ S&P 500: 13%
ā¢ S&P Equal Weight: 0% pic.twitter.com/Bc8EbBYhJT— Koyfin (@KoyfinCharts) November 2, 2023
$AAPL flips š to š in after hours! pic.twitter.com/Hy2WeVqIkD
— TrendSpider (@TrendSpider) November 2, 2023