Daily Chart Report π Wednesday, November 6, 2024
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Todayβs Summary
Wednesday, November 6, 2024
Indices: Russell 2000 +5.84% | Dow +3.57% | Nasdaq 100 +2.74% | S&P 500 +2.53%
Sectors: 8 of the 11 sectors closed higher. Financials led by a wide margin, jumping +6.08%. Real Estate lagged, dropping -2.67%.
Commodities: Crude Oil futures fell -0.42% to $71.69 per barrel. Gold slid -2.67% to $2,676 per oz.
Currencies: The US Dollar Index jumped +1.61% to a four-month high of $105.12.
Crypto: Bitcoin soared +9.01% to an all-time high of $75,637. Ethereum surged +12.47% to $2,720.
Volatility: The Volatility Index tumbled -20.68% to 16.26.
Interest Rates: The US 10-year Treasury yield jumped to a four-month high of 4.429%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Today's Chart of the Day was shared by Jason Goepfert (@jasongoepfert).
- The Russell 2000 ($IWM) gapped higher by +5.5% this morning as election uncertainty evaporated from the market. It closed higher by +5.8%, marking its best day since May 2020.
- Jason points out that today's gap was the fourth-largest in $IWM's 24-year history. While 2008 was a nasty exception, $IWM has historically been much higher three months after an upside gap of +5% or more.
- The next few days and weeks have leaned bearish. However, three months later, $IWM was higher 80% of the time for a median gain of +20.5%. Seasonality also favors $IWM in the coming months, as Small Caps have historically *outperformed* Large Caps from now until March.
- The Takeaway: When the Russell 2000 ($IWM) opens higher by more than +5% like it did today, it has historically gained a median of +20.5% over the next three months.
Top Links
Market Poised for a Year-End Rally - Alfonso's Daily Note
Alfonso Depablsos examines how stocks tend to do in the final months of the year.
The Day After...2016 Redux - Bespoke
Bespoke breaks down the market's initial reaction to the election.
The Most Important Stock Market Charts AFTER the Election - CappThesis
Frank Cappelleri analyzes the post-election outlook for the S&P 500.
What the Latest Dow Shakeup Could Mean - Schaeffer's Investment Research
Rocky White examines the implications of the Dow's upcoming reconstitution.
Podcast with Stan Druckenmiller - Norges Bank Investment Management
Billionaire technician and hedge fund manager Stan Druckenmiller shares his thoughts on the current macro landscape.
Quote of the Day
"A newspaper is a device for making the ignorant more ignorant and the crazy crazier."
- H. L. Mencken
Top Tweets