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Today’s Summary
Tuesday, November 3rd, 2020
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average advancing 555 points or 2.06%. The S&P 500 and Nasdaq rose 1.78% and 1.85%, respectively. Small-Caps outperformed with the Russell 2000 gaining 2.91%.
Sectors: 10 of the 11 sectors closed higher. Industrials led, rising 2.95%. Energy was the only sector to close lower, falling 0.57%.
Commodities: Crude Oil futures moved higher by 2.31% to $37.66 per barrel. Gold futures rose 0.95% to $1,910 per ounce.
Currencies: The US Dollar Index dropped 0.74% – its worst day in over two months.
Interest Rates: The 10-year US Treasury yield rose to 0.904% – its highest level since June.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$RUT weekly
Russell index and the Presidential Elections. pic.twitter.com/nNP1aZzXPv
— Yuriy Matso (@yuriymatso) November 3, 2020
Today’s Chart of the Day was shared on Twitter by Yuriy Matso (@yuriymatso). It’s a weekly candlestick chart of the Small-Cap Russell 2000 index over the past 13 years. Yuriy points out that the Russell 2000 currently looks very similar to how it did leading up to the 2012 and 2016 elections. In both scenarios, price broke out to all-time highs and continued higher in the weeks/months post-election. To be fair, the sample size is tiny here, and the index went on to make new lows in the weeks after the 2008 election. But it’s certainly some food for thought given the recent outperformance we’ve seen from Small-Caps. The Russell hasn’t hit an all-time high in more than two years and we’re currently about 7% below those former highs. Will Small-Caps see a similar post-election surge like they did in 2012 and 2016?
Quote of the Day
“It’s never paid to bet against America. We come through things, but its not always a smooth ride.”
– Warren Buffett
Top Links
Thinking of Dumping it All? – Marea Market Musings
Dan Russo reminds us not to make emotional trading/investment decisions around the election.
Typical November Trading: Strong Start & Finish – Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed throughout November.
Here’s A Sector And A Stock That You Don’t Want To Ignore In November – StockCharts.com
Tom Bowley points out that November is a strong month for the Industrial sector as well as one particular Industrial stock – Deere & Company, $DE.
It’s Election Day! – Libertas Wealth Management
In this video, Adam Koos of Libertas Wealth Management shares a ton of stats and info about how stocks perform around elections.
What The Presidential Election Means for Investors: Now and Into The Future – See it Market
Willie Delwiche takes a look at market internals and presidential cycles.
Top Tweets
One of the strongest trendlines I've seen in a long time. It's hard to believe some people totally dismiss technical analysis. $QQQ pic.twitter.com/4ofcZLsMFN
— Greg Rieben (@gregrieben) November 3, 2020
$SPY $SPX Breadth pic.twitter.com/sx6MWoyTbf
— Pɪᴠᴏᴛ Aɴᴀʟʏᴛɪᴄs ? (@pivotanalytics) November 3, 2020
S&P 500 Advance-Decline Percent Line still looks pretty good. #SPX500 $SPY #StockMarket #Stocks pic.twitter.com/InHrlF2Zpl
— Mike Moses, CMT (@DominickMike) November 3, 2020
Equal-weight S&P improving vs. cap-weight. pic.twitter.com/wpGvnzF9Wr
— Strategas (@StrategasRP) November 3, 2020
Russell 1000 running up to previous highs & 50-day MA while > 53% of index constituents are above their respective 50-day MA's $RUI $IWB pic.twitter.com/9cK6ISiYyK
— Drew Wells, CMT, CIMA® (@DrewTheCharts) November 3, 2020
Add in a relative breakout vs S&P 500 and Russell's 2000 friends have just entered the club.$SPX $ES_F $SPY $IWM $RT_F pic.twitter.com/xnG6BB76KE
— David Zarling, CMT (@AdaptivCharts) November 3, 2020
When we saw this heavy of put volume in the past, they were proven right and $VIX did come down. Feb 5th '18, Sept. '15, Feb. '14. The obvious standout was March 3rd of this year when vol did continue higher. https://t.co/Yz6tAHZhjV
— Andrew Thrasher, CMT (@AndrewThrasher) November 3, 2020
Never thought I'd be saying banks are showing strength, but hey, that's 2020 for you. Regional Banks/Financial Sector broke out of a long-term downtrend and horizontal resistance on this rate move. $KRE $KBE $XLF $TNX pic.twitter.com/Sxo3j2kXw5
— Matthew Timpane, CMT (@mtimpane) November 3, 2020
10-year Treasury yields rise to the highest since June. pic.twitter.com/6X9qNSeqTM
— Lisa Abramowicz (@lisaabramowicz1) November 3, 2020
Credit Markets: JNK:IEF printed a new closing high today for the rally off the March 23 low. pic.twitter.com/nBHYv9A658
— Chris Ciovacco (@CiovaccoCapital) November 3, 2020
Don't look now, but Deutsche Bank (DAX) triggered on our European Breakout list with relative confirmation. pic.twitter.com/QVItcM4FmP
— RenMac: Renaissance Macro Research (@RenMacLLC) November 3, 2020
Bitcoin broke $14,000$BTC.X #Bitcoin pic.twitter.com/K9D7PzaIrY
— Stocktwits (@Stocktwits) November 3, 2020
Headline writers trying to connect every 5 minute candle to the election….. pic.twitter.com/4Q366w0rBl
— Arun S. Chopra CFA CMT? (@FusionptCapital) November 3, 2020