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Today’s Summary
Wednesday, November 11th, 2020
Indices: US Stocks moved higher in today’s session. The Dow Jones Industrial Average was more or less flat, slipping just 23 points or 0.08%. The S&P 500 and Nasdaq rose, 0.77% and 2.01%, respectively. The Russell 2000 was completely unchanged.
Sectors: 6 of the 11 sectors closed higher. Tech led, gaining 2.37%. Materials lagged, falling 1.49%.
Commodities: Crude Oil futures inched higher by 0.22% to $41.45 per barrel. Gold futures fell 0.79% to $1,862 per ounce.
Currencies: The US Dollar Index rose 0.31%.
Interest Rates: The 10-year US Treasury yield moved higher for the 4th straight day to 0.982% – its highest level in more than 6-months.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
85% of stocks > 200-day moving averages, most since Aug 2013.
One consequence of rotation to Value & small-caps is improvement in broad breadth gauges. Watching Growth & large-caps. If they break down (absolute, not relative), then so does the bullish breadth case. @NDR_Research pic.twitter.com/4MFGVad5dP— Ed Clissold (@edclissold) November 11, 2020
Today’s Chart of the Day was shared on Twitter by Ed Clissold of Ned Davis Research (@edclissold). Rotation has been a key theme this week. Leading areas of the market (Tech, Large-Cap, Growth) have sold-off while lagging areas (Energy, Financials, Small-Caps, Value) have suddenly caught a bid. This rotation probably didn’t feel too good if you’ve been overweight Large-Cap Tech like many folks out there. However, rotation is a healthy part of bull markets. Ed points out that the recent rotation has helped breadth improve dramatically, with over 85% of S&P 500 stocks currently above their 200-day moving averages. According to his data, that’s the highest reading for this breadth metric since 2013. We may be a bit short-term overbought here, but the S&P 500 has historically seen above-average 12-month returns when this breadth metric is above 61%.
Quote of the Day
“Our debt to the heroic men and valiant women in the service of our country can never be repaid. They have earned our undying gratitude.”
– Harry S. Truman
Top Links
Takeaways From Latest Rotation Out of Tech Stocks – TD Ameritrade Network
Going along with today’s Chart of the Day, Ed Clissold shares his thoughts on the recent rotation.
Bitcoin Going for the Gold – Bespoke
Bespoke takes a look at how Bitcoin has fared relative to Gold.
Travel Leisure & Entertainment Stocks. Is Now The Time To Invest? – All Star Charts
JC Parets looks for the strongest stocks within the Dow Jones Travel & Leisure Index.
Stock Market Analysis November 11, 2020 – Brian Shannon
Brian Shannon offers a quick analysis of this week’s price action and what to anticipate in the near-term.
Investors Should Buy Any Pullbacks in Stocks as S&P 500 Marches Toward 13% Gain By Early Next Year, Technical Analyst Says – Business Insider
This article sums up Fundstrat’s technical outlook on the S&P 500.
Top Tweets
The S&P 500’s 10 worst-performing stocks YTD (through November 6) were up an average of 23% Monday and Tuesday.
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— Callie Cox (@callieabost) November 11, 2020
The QQQ's have filled yesterday's gap: pic.twitter.com/WgiGbKHMea
— Walter Deemer (@WalterDeemer) November 11, 2020
86% of stocks in the S&P 500 are trading above their 200-day moving averages, the highest since January and 2nd highest of the last 5 years pic.twitter.com/VlUfreEC13
— Sarah Ponczek (@SarahPonczek) November 11, 2020
At yesterday's close, 84% of the S&P500 was trading above their 200-day moving average. Recency bias might point towards Jan'20, 'Jan'18 episodes, but generally, 80%+ above the 200-day MA in $SPX is a sign of durable strength and constructiveness on counter-trend pullbacks pic.twitter.com/GAGMM89iQh
— Michael McKerr (@MikeMcKerr_TDA) November 11, 2020
Despite today's dip, energy stocks in the S&P remain on track for the best week ever. pic.twitter.com/EtL6jVTvQI
— Elena Popina (@lena_popina) November 11, 2020
Here's a look at the tech sector and its key components: semiconductors and software.$XLK has made two lower-highs while Software has failed to breakout twice. $SMH & $IGV are still making higher lows but showing signs of pot'l upside weakness.
Tech is at a fork in the road. pic.twitter.com/krqoI9urd2
— Andrew Thrasher, CMT (@AndrewThrasher) November 11, 2020
Rotation update! US #Value has outperformed US #Growth by a staggering 9% since last Friday. Yet its underperformance this year alone remains a hefty 24%. pic.twitter.com/nngkJmAFQq
— jeroen blokland (@jsblokland) November 11, 2020
Growth divided by Value. This what the shift to value looks like. pic.twitter.com/mn9cK7O6cV
— Eddy Elfenbein (@EddyElfenbein) November 11, 2020
Healthy rotation says $SPX internals, and inter-market evidence. pic.twitter.com/aHYrr4vgGJ
— Mark Ungewitter (@mark_ungewitter) November 11, 2020
Lots of ways to talk about improving breadth. From index perspective, favorite is Value Line Geometric Index (median stock) – its finally through resistance near 490 & next up is changing the pattern of lower highs. Its Arithmetic cousin shows average stock already at new highs. pic.twitter.com/DDUwWUXtMi
— Willie Delwiche, CMT, CFA (@WillieDelwiche) November 11, 2020
The Value Line Arithmetic Index (aka the average stock) has broken out to new highs.
Yet another sign that there is broad participation to this move and a good sign for equities going forward. pic.twitter.com/sg7n7ubz0B
— Ryan Detrick, CMT (@RyanDetrick) November 11, 2020
With the US 10 yr yield already trending higher, will today be the day it finally breaks key resistance and above 1.00%? If so it has huge implications, dollar positive, but negative for EM, gold and tech in particular. pic.twitter.com/Iby6CRAQaj
— James Brodie CMT (@jamesrbrodie) November 11, 2020
I am patiently waiting for support to hold in the US dollar index…this is the monthly chart I have been watching. https://t.co/x3npSWo5Td pic.twitter.com/ARV6FfDQtI
— DeCarleyTrading.com (@carleygarner) November 11, 2020
$AAPL, which is more consumer discretionary than tech, sports a bullish setup as it goes for a triangle breakout. RSI is bouncing in the 40-50 zone, an area that acts as momentum support in an uptrend. pic.twitter.com/3jptVvxs1U
— Arthur Hill, CMT (@ArthurHill) November 11, 2020
Puppies are getting us through this.
(via @pkedrosky) pic.twitter.com/bNuB8xcQzC
— Carl Quintanilla (@carlquintanilla) November 11, 2020