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Today’s Summary
Thursday, November 5th, 2020
Indices: US Stocks continued higher in today’s session, with the Dow Jones Industrial Average advancing 543 points or 1.95%. The S&P 500 also rose by 1.95%, while the Nasdaq moved higher by 2.59%. Small-Caps outperformed, with the Russell 2000 gaining 2.78%.
Sectors: Materials led, jumping 4.08%. Energy lagged and was unchanged.
Commodities: Crude Oil futures fell 1.63% to $38.51 per barrel. Gold futures had their best day in more than six months, rising 2.67% to $1,947 per ounce.
Currencies: The US Dollar Index had its worst day in more than six months, dropping 0.96%.
Interest Rates: The 10-year US Treasury yield slipped to 0.763%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by Pivot Analytics (@pivotanalytics). Stocks have gone vertical this week. The S&P 500 logged its 4th consecutive gain of 1% or more. Before today, this has happened 11 times since 1930 and only 3 times since 1938. Taking a look at the forward returns, the next day has been positive only 9% of the time! Looking further out, things start to get more bullish. One week later, the index has historically been positive 73% of the time for an average gain of 3%. One month later, the index has also been up 73% of the time for an average gain of 10%. In other words, the rally may be running out of juice in the very near-term, but longer-term, this sort of momentum is bullish.
Quote of the Day
“You don’t need a weatherman to know which way the wind blows.”
– Bob Dylan
Top Links
What the “Day After” Means – SentimenTrader
Jason Goepfert examines what has historically happened when the S&P 500 rallied the day after an election.
10 Post-Election Reactions We Are Watching – LPL Financial Research
The team at LPL Financial Research highlights a few notable post-election trends across the markets.
Biotechnology Breaks Out of Historic Base – All Star Charts
JC Parets points out that Biotech stocks are breaking out of a 5-year consolidation within a strong uptrend.
Gold in All Forms Glitters – Bespoke
Bespoke spotlights today’s breakout in Gold.
Silver Miners About to Experience “Rally Time?” – Kimble Charting Solutions
Chris Kimble breaks down a weekly chart of the Silver Miners ETF, $SIL.
Top Tweets
$SPX is logging its 4th straight gain of at least 1%.
This has happened only 3 prior times since 1938:
10/11/1982
10/14/1974
6/1/1970All three occurred soon after major #stockmarket LOWS.
— Frank Cappelleri (@FrankCappelleri) November 5, 2020
Nasdaq futures up a chunky 9% since election day pic.twitter.com/dIsA96Hfe0
— Jonathan Ferro (@FerroTV) November 5, 2020
Here's that $SPX trading range. It carries a 400 point directional move up/down once it breaks. Watch #bonds pic.twitter.com/ByUD0yf9LK
— Abigail Doolittle (@TheChartress) November 5, 2020
It's been quite the roller coaster, but S&P 500 equal-weight ($RSP), Russell 2000 ($IWM) and S&P 400 ($MDY) are at their highest levels since Feb and back in positive territory for the year. https://t.co/D2xNJ0N4zx pic.twitter.com/Ynh43p1LLR
— Willie Delwiche, CMT, CFA (@WillieDelwiche) November 5, 2020
Basic Materials ($XLB) breaking out to new all-time highs after basing above resistance for the last 2-2.5 months. pic.twitter.com/A3bjGLm1lV
— Tom Bruni, CMT (@BruniCharting) November 5, 2020
Fresh highs for Healthcare… very strong moves. pic.twitter.com/NWb2U8htHR
— Strategas (@StrategasRP) November 5, 2020
Biotech breakout appears to have concluded five-year repair process. Fresh highs, basis $XBI and $IBB, would support the case. pic.twitter.com/N4iHZpys7l
— Mark Ungewitter (@mark_ungewitter) November 5, 2020
Seasonality for biotech is phenomenally strong during the month of November.
It's the strongest pattern that I've encountered, with $IBB rising this month for the past 10 consecutive years in a row. pic.twitter.com/OdkPzoOdi2
— Danny Merkel (@ChartingTrends) November 5, 2020
The dollar's having a bad day — BBDXY is at the lowest level since May 2018 pic.twitter.com/nyFImw3iK1
— Katherine Greifeld (@kgreifeld) November 5, 2020
small breakout in gold with weak-dollar back-drop. Yen strength equally compelling. pic.twitter.com/3AiGxVDb15
— RenMac: Renaissance Macro Research (@RenMacLLC) November 5, 2020
Early last month gold broke to the upside but failed to hold. Today the price joined the Gold Shares in a strong breakout. New bull market highs ahead? pic.twitter.com/3S3xHQoVj4
— Martin Pring (@martin_pring) November 5, 2020
Nice move today in Gold$GC_F $GLD pic.twitter.com/bsTAzs0UAI
— Shane C. Murphy (@murphycharts) November 5, 2020
$GDX bears paying attention to. Looks like it is getting ready to bust a move. pic.twitter.com/wY9LJ014ec
— Alan Cohen (@al_xdpg) November 5, 2020
#Bitcoin — 200% Swing Up…. Key Signal. pic.twitter.com/KRsi7RfqmR
— Nautilus Research (@NautilusCap) November 5, 2020
Party like it's 2017? #bitcoin pic.twitter.com/2avT1caBHS
— jeroen blokland (@jsblokland) November 5, 2020
Party like it's 2017? #bitcoin pic.twitter.com/2avT1caBHS
— jeroen blokland (@jsblokland) November 5, 2020