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Today’s Summary
Monday, November 16th, 2020
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average rising 471 points or 1.60%. The S&P 500 and Nasdaq gained 1.16% and 0.80%, respectively. Small-Caps outperformed with the Russell 2000 advancing 2.37%. The Dow, S&P, and Russell all closed at record highs.
Sectors: 10 of the 11 sectors closed higher. Energy led significantly, jumping 6.58%. Health Care was the only sector to close lower, slipping 0.17%.
Commodities: Crude Oil futures moved higher by 3.02% to $41.34 per barrel. Gold futures were flat, and continue to trade at $1,888 per ounce.
Currencies: The US Dollar Index slipped 0.17%.
Interest Rates: The 10-year US Treasury yield inched higher to 0.908%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Russell 2000 on fire.
Strongest 11-day rally — up 15% — for small caps since 2011 pic.twitter.com/XyNm3APp6o
— Sarah Ponczek (@SarahPonczek) November 16, 2020
Today’s Chart of the Day was shared on Twitter by Sarah Ponczek of Bloomberg (@SarahPonczek). It’s a chart of the Russell 2000 over the past decade. On Election Day, we discussed the potential for a post-election surge in Small-Caps, and it sure looks like that’s happening. As Sarah points out, the Russell 2000 is having it’s best 11-day rally since 2011. Perhaps more importantly, the index closed at an all-time high for the first time in more than two years on Friday. This is further evidence of broadening participation and risk appetite among market participants. According to seasonality, the Russell 2000 has historically outperformed the S&P 500 from November-March. After making zero progress in the past two years, could the Russell 2000 finally be ready for a meaningful leg higher? Stay tuned!
Quote of the Day
“One of the frustrating things for people who miss the first rally in a bull market is that they wait for the big correction, and it never comes. The market just keeps climbing and climbing.”
– Martin Zweig
Top Links
What if This is the Bull Market? – Marea Market Musings
Dan Russo explains that we’re probably closer to the beginning of a cyclical bull market than the end.
Small-Caps Join The New-Highs Party – LPL Financial Research
The team at LPL Financial Research weighs-in on the recent surge in Small-Caps.
The More Things Change, The More They Stay The Same – The Weekly Trend
In this week’s podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments including the surge in Small-Caps, the breakout in Japan, and more.
Grain of Salt! – Murphy Charts
Shane Murphy offers his thoughts on the recent rotation from Growth to Value.
Rotation Games – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight the strongest stocks, trends, and themes across the markets.
Top Tweets
Only 18 stocks in the S&P 500 are down this month.
— Bespoke (@bespokeinvest) November 16, 2020
DJIA
Rus2k
SPXAll Time Highs Across the Board pic.twitter.com/YgpywNgk2g
— Michael Antonelli (@BullandBaird) November 16, 2020
Last week, the S&P 500 had a huge surge in stocks making one-month highs, suggesting broad participation.
Historically, when >65% of the components make a new monthly high, the future returns are quite strong. pic.twitter.com/9GwPXvGdJG
— Ryan Detrick, CMT (@RyanDetrick) November 16, 2020
Bull markets search for excuses to move higher. Those who are still fighting this trend likely have a while longer until they feel smart again. $SPX $SPY pic.twitter.com/gswbgHgeKR
— Jim Denholm, CMT (@denholm_jim) November 16, 2020
The #markets, being a discounting mechanism, seem to be looking past concerns about current COVID-19 trends and on to what will, hopefully, be better days for the #economy in 2021 & 2022. Here we see that 72% of #stocks in the #SP500 made a new 4-week high last week. pic.twitter.com/rBZX3cskeY
— Jurrien Timmer (@TimmerFidelity) November 16, 2020
Russell 2000 ($IWM) has gone from -7% YTD on 10/30 to +7% YTD as of today. pic.twitter.com/VX7RYxn6Kz
— Willie Delwiche, CMT, CFA (@WillieDelwiche) November 16, 2020
If multi-year breakouts to new highs and accelerating relative strength are your thing, I'd say you should be watching Small Cap Growth right now ?$IJT $SLYG pic.twitter.com/sWlS9ylHkH
— Grayson Roze (@GraysonRoze) November 16, 2020
Nearly 90% of the 49 indices that make up the ACWI are trading above their 200 day MAVG pic.twitter.com/v6uKNdT83B
— Michael Antonelli (@BullandBaird) November 16, 2020
Bond prices $TLT in a clear downtrend of lower highs and lower lows. See ST downside to 150 as interest rates have plenty of open air above! pic.twitter.com/CJUNMy2hhh
— David Keller, CMT (@DKellerCMT) November 16, 2020
#Bitcoin #Crypto — 6-week Streak for Bitcoin. pic.twitter.com/g1vSd2WbE7
— Nautilus Research (@NautilusCap) November 16, 2020
#Japan's #Nikkei Index is up almost 10% this year, rising to the highest level since 1991. pic.twitter.com/eNsoET8hJz
— jeroen blokland (@jsblokland) November 16, 2020
Step 1: Say that Buffett has lost his touch
Step 2: Do nothing while Buffett invests in Japan
Step 3: Watch Japan trade at it's highest level since 1991Anyone else have an opinion on how the Buffett has lost it?
— Dan Russo, CMT (@DanRusso_CMT) November 16, 2020