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Today’s Summary
Tuesday, November 9th, 2021
Indices: Dow -0.31% | S&P 500 -0.35% | Nasdaq -0.60% | Russell 2000 -0.63%
Sectors: 6 of the 11 sectors closed higher. Utilities led, gaining 0.51%. Consumer Discretionary lagged, falling 1.85%.
Commodities: Crude Oil futures gained 2.71% to $84.15 per barrel. Gold futures inched higher by 0.15% to a two-month high of $1,831 per ounce.
Currencies: The US Dollar Index inched lower by 0.08%.
Interest Rates: The US 10-year Treasury yield fell to 1.439%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Materials hanging out at new highs. $XLB pic.twitter.com/lldPIacmhn
— Shane C. Murphy (@murphycharts) November 9, 2021
Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). It’s a chart of the Materials sector ETF, $XLB, over the past year, along with its relative strength line below. The largest stocks in this ETF include $LIN, $SHW, $APD, $FCX, and $ECL. Shane points out that the Materials sector is breaking out to all-time highs for the first time since May. Materials have historically done well in November with a 90% win rate over the past 19 years. To be fair, this is the second smallest sector as it represents just 2.6% of the S&P 500. To give you an idea of how small that is, single stocks like Amazon have a larger weighting in the S&P 500 than this entire sector. Nonetheless, the Materials sector is breaking out of a six-month base and looks poised for its next leg higher.
Quote of the Day
“Trading doesn’t just reveal your character, it also builds it if you stay in the game long enough.”
– Yvan Byeajee
Top Links
Melt-Up Intact with Most Sectors Near Record Levels – Potomac Fund Management
Dan Russo takes a look at the strongest/weakest sectors of the S&P 500.
Is Clean Energy Next Up? – Honey Stocks Charting
Sam McCallum points out that clean energy stocks are attempting to make a comeback.
Options Traders Return to Speculative Euphoria – SentimenTrader
Jason Goepfert points out that speculative call option activity is picking up again.
The Most Important Chart in Crypto – All Star Charts
Louis Sykes highlights some of the most bullish developments in the Crypto space.
Cracks in the Inflation Trade – AlphaCharts Blog
Brian G. points out that several commodities are starting to reverse lower.
Top Tweets
S&P500 and rabbit math pic.twitter.com/BDYd0o9mT2
— J.C. Parets (@allstarcharts) November 9, 2021
Not at all surprised to see us stall here as the peak call for the $QQQ is right at the $400-strike level. Q's have had trouble with round century numbers in the past too. Reload opportunities are likely coming… pic.twitter.com/lyxQgaYGfZ
— Matthew Timpane, CMT (@mtimpane) November 9, 2021
Highest percent of stocks in the S&P 500 above their 50-day moving average since May. @LPL advisors can see this chart and more in the latest edition of the Talking Technicals Webinar and Chart Book. Go get it!@LPLResearch pic.twitter.com/evfNWfS5J8
— Scott Brown, CMT (@scottcharts) November 9, 2021
Russell 2000 has been on nice run lately, but relative to its 200d moving average, it has a long way to go before it hits stretched territory
[Past performance is no guarantee of future results] pic.twitter.com/dMCizhGIgZ— Liz Ann Sonders (@LizAnnSonders) November 9, 2021
The Materials sector ETF $XLB is the latest to break out to new highs: pic.twitter.com/1qaECDsO1E
— Bespoke (@bespokeinvest) November 9, 2021
Sector seasonality via @EquityClock$XLB $XLI $XLF $XLK $XLY pic.twitter.com/zO5OjuZKJi
— Ian McMillan, CMT (@the_chart_life) November 9, 2021
Look at Italy pressing up against its 2018 highs. Is a breakout coming?$EWI pic.twitter.com/5AgePaqczg
— Alfonso Depablos (@AlfCharts) November 9, 2021
Frontier Markets $FM have been on fire since its 2020 lows! pic.twitter.com/letcXkOtXv
— Grant Hawkridge (@granthawkridge) November 9, 2021
From our work this morning… the consensus still favors a steepener, but should they? Historically not unusual to see #yieldcurve flatten roughly 18 months off a market low… @StrategasRP pic.twitter.com/H16EMmnzrg
— Chris Verrone (@verrone_chris) November 9, 2021
Trendline test here for #Gold $GDX $GLD pic.twitter.com/leTv2UxuF4
— Greg Rieben (@gregrieben) November 9, 2021
If and when copper futures resolve higher from their current range and we can't access the futures market… $DBB is great alternative . pic.twitter.com/O2Xlbpi0kj
— Ian Culley (@IanCulley) November 9, 2021
Failed breakout in the aussie yen cross $AUDJPY
Despite the breakout in small caps, there are plenty of signs that this is different from November of 2020 pic.twitter.com/I78RBSeZLS
— Mike Singleton, CFA (@InvictusMacro) November 8, 2021
the most important chart in all of crypto is breaking out to new all-time highs https://t.co/RfgO6TKzGE #bitcoin #ethereum $ripple #Cardano #binance pic.twitter.com/Yjm7TZcdbi
— J.C. Parets (@allstarcharts) November 9, 2021
$TSLA lost more than an $F's worth of market cap today pic.twitter.com/RyKYeoGXQ4
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) November 9, 2021
The battle of the heavy weights in $XLY continues…
Certainly a weekly situation I am monitoring in this pair…$AMZN $TSLA pic.twitter.com/W7JPPaDERL
— Dan J. Gorghuber, CMT (@Futures_Runner) November 9, 2021
— Arun S. Chopra CFA CMT? (@FusionptCapital) November 9, 2021
You’re all caught up now. Thanks for reading!