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Today’s Summary
Friday, November 6th, 2020
Indices: US Stocks ended this stellar week on a quiet note, with the indices closing slightly lower. The Dow Jones Industrial Average slipped 67 points or 0.24%. The S&P 500 and Nasdaq were more or less unchanged (0.03% and 0.04%, respectively.) The Russell 2000 underperformed, falling 0.96%.
Sectors: Consumer Staples led, gaining 0.46%. Energy lagged, dropping 2.16%.
Commodities: Crude Oil futures fell 3.35% to $37.49 per barrel. Gold futures rose 0.25% to $1,952 per ounce.
Currencies: The US Dollar Index fell 0.43%.
Interest Rates: The 10-year US Treasury yield moved higher to 0.817%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
New all-time weekly closing highs for the Nasdaq 100 $QQQ Note: Fibonacci extension: 2000-2002 crash. pic.twitter.com/ko9tvp7LfU
— Alfonso Depablos (@AlfCharts) November 6, 2020
Today’s Chart of the Day was shared on Twitter by Alfonso Depablos (@AlfCharts). It’s a weekly chart of the Nasdaq 100 ETF, $QQQ over the past 3.5 years. $QQQ climbed 9.32%, marking the 2nd best week for the ETF over the past decade. As Alfonso points out, price closed at an all-time weekly high for the first time in more than two months. When price is in unchartered territory like this, Fibonacci extensions are one of the only tools we have to identify potential resistance levels. For whatever mysterious reason, price is often attracted to these levels like a magnet. Now that we’re decisively above the 261.8% extension of the 2000-2002 decline, the next logical price target is the 423.6% extension around $446, which is about 50% higher from current prices. In a comment to The Chart Report, Alfonso said, “This is definitely not bearish action for stocks, and the 261.8% extension now offers you a well-defined risk level.”
Quote of the Day
“A smile happens in a flash, but its memory can last a lifetime.”
– Bertrand Russell
Top Links
The Failure of Ungrounded Investment Narratives – Disciplined Systematic Global Macro Views
Here’s a good read from Mark Rzepczynski on the dangers of following narratives. The last two paragraphs are absolute gold.
Welcome to the Best 3 Months of the Year! – All Star Charts
JC Parets offers his perspective on seasonality.
The Election, Metals, and Uncertainty – Fibonacci.com
Tarek Saab gives a brief analysis of the precious metals space.
Stock Market Video Analysis for Week Ending 11/6/20
In this quick video, Brian Shannon reviews this week’s price action and lays out some levels of interest to keep an eye on next week.
Why We’re Blind to Probability – Collaborative Fund
Here’s a good read from Morgan Housel about our inability to fully understand probabilities.
Top Tweets
This is the S&P 500's largest weekly gain ever when closing at an all-time (weekly) high.
— SentimenTrader (@sentimentrader) November 6, 2020
The Nasdaq-100 rose 9.4% for the week, the second best move this year & the second best move of the decade. $NDX pic.twitter.com/h2cHEBqzG5
— MicroSectors (@msectors) November 6, 2020
"History doesn't repeat itself, but it often rhymes." Mark Twain
We've been saying for awhile now that October is the worst month of the year for the S&P 500 during an election year, but November is the best. pic.twitter.com/6ALLtTunMl
— Ryan Detrick, CMT (@RyanDetrick) November 6, 2020
That's two days this week with about 80% of stocks advancing. Not bearish and represents broad accumulation. $SPX $SPY pic.twitter.com/58Bd8cXx3y
— David Keller, CMT (@DKellerCMT) November 6, 2020
All 11 S&P sectors finished up this week, posting hefty gains across the board.
The +7.23% gain in $SPY was outpaced by:
Technology $XLK +9.67%
Health Care $XLV +8.13%
Materials $XLB +7.63%
Comm. Services $XLC +7.60%Oh and yep, you guessed it, Energy lagged big time (+0.73%) pic.twitter.com/X2M8ea86F9
— Grayson Roze (@GraysonRoze) November 6, 2020
New 52-week high for Japan. pic.twitter.com/DhQVUM3fsd
— Strategas (@StrategasRP) November 6, 2020
False breakout in the gold/silver ratio? Silver to outperform gold here? From failed moves come fast moves. #gold #silver $GLD $SLV pic.twitter.com/ZHl9uJpiau
— Tarek I. Saab (@FibLines) November 6, 2020
Another precious metal rally in the making? #Silver is up 13% from its low on October 29th, #gold is up 5%. pic.twitter.com/GiDeYKVGp7
— jeroen blokland (@jsblokland) November 6, 2020
$GDX weekly. Nice and orderly. Big move by so many if these names this week so let's see if it can keep it up and continue to pull out of this consolidation. Long some and looking to add pic.twitter.com/HIY6bUnhJW
— Gregory Krupinski (@G_krupins) November 6, 2020
Very interesting..
Bitcoin daily chart for last 90 days vs "Bitcoin" search on google trends
Looks like the public isn't as involved as I would expect, makes me think has lot more to go
Risk Management always Job #1$BTC.X $BTCUSD pic.twitter.com/etW2pwJUAw
— Brian Shannon, CMT (@alphatrends) November 6, 2020
Pro tip. $DXY $SPY
Instead of watching the news/election… watch the US Dollar Index instead, at least it'll help keep you on top of market direction.
I've posted this chart a few times in the last 2 months.
Still relevant. pic.twitter.com/uDFCxmhuoC— Sam McCallum (@honeystocks1) November 6, 2020