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Today’s Summary
Wednesday, November 18th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 345 points or 1.16%. The S&P 500 also fell 1.16%, while the Nasdaq slipped 0.82%. The Russell 2000 underperformed, dropping 1.26%.
Sectors: All 11 sectors closed lower. Industrials led, but still slipped 0.45%. Energy lagged, dropping 2.91%.
Commodities: Crude Oil futures moved higher by 1.40% to $42.01 per barrel. Gold futures fell 0.59% to $1,874 per ounce.
Currencies: The US Dollar Index was more or less flat (0.03%).
Interest Rates: The 10-year US Treasury yield fell to 0.880%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Blue arrows when $vix <20 pic.twitter.com/tTzRkv2tBy
— Urban Carmel (@ukarlewitz) November 18, 2020
Today’s Chart of the Day was shared on Twitter by Urban Carmel (@ukarlewitz). It’s a chart of the S&P 500 over the past four years along with the Volatility Index (VIX) below. The VIX hasn’t closed below 20 since February 21st. That’s 189 consecutive trading days, which is by far the longest streak since the Financial Crisis (h/t @SentimenTrader). That streak is still alive with today’s close of 23.84. As Urban points out, most of the S&P 500’s gains in recent years have occurred when Volatility is in a range below 20. Perhaps we’ll see Volatility get crushed in 2021 like the last two post-election years (2013 and 2017). Both of those years were a steady grind higher for the S&P 500 with very little downside volatility. But before we can even think about that, we need to see the VIX fall into a more ‘normal’ range below 20.
Quote of the Day
“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”
– Sir John Templeton
Top Links
5 Noteworthy Charts To Watch as Stocks Soar – LPL Financial Research
The team at LPL Financial Research shares five charts that speak to the current market environment.
Stocks Flying Around the Globe – Bespoke
Bespoke examines how the S&P 500 is performing this month relative to other global equity markets.
These Semis Keep on Truckin’ – All Star Charts
Sean McLaughlin outlines an options trade on a Semiconductor stock that’s poised to move higher – KLA Corp, $KLAC.
Stock Market Video Analysis 11/18/20 – AlphaTrends
In this quick video, Brian Shannon analyzes recent price action in stocks and cryptocurrencies.
A Very Strong Stock in an Industry Just Breaking Out and Showing Leadership – StockCharts.com
Tom Bowly spotlights an Industrial stock that’s breaking out – WillScot Corporation, $WSC.
Top Tweets
The Russell 2000 (small caps) is on pace to have its best month ever.
The previous best month ever was in February 2000. pic.twitter.com/yJxkc4kezD
— Ryan Detrick, CMT (@RyanDetrick) November 18, 2020
Rare to see >90% of small-caps above 50-day average… historically bullish. pic.twitter.com/jqwBuhGZPF
— Strategas (@StrategasRP) November 18, 2020
For the 1st time in 9 months, can the $VIX finally close below 21?
It would join only April 2003 and October 2009 as ending streaks this long at this elevated of a level. pic.twitter.com/0FOQYIU80T
— SentimenTrader (@sentimentrader) November 18, 2020
$XLE at resistance from 10th March gap and 200DMA pic.twitter.com/3oacXSdVQo
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) November 18, 2020
The Semiconductor/S&P 500 relative chart's multi-year base is attempting to breakout. I could see this dip back one more time on a market-wide pullback, but it looks like semiconductors are trying to steal the baton from software. $SMH $SOXX $SOX $QQQ $IGV pic.twitter.com/UVAUiwNrEv
— Matthew Timpane, CMT (@mtimpane) November 18, 2020
Retail first made all time new highs end of August….and another new high today. U sure don't hear the media touting the horns on this sector….. pic.twitter.com/QE2iwD5CaJ
— Linda Raschke (@LindaRaschke) November 18, 2020
REITs are now overbought and have not changed relative trends. Recall they were laggards pre-COVID. $REIT $VNQ $REET pic.twitter.com/5EHgcJk0Kq
— RenMac: Renaissance Macro Research (@RenMacLLC) November 18, 2020
One of the most important relationships in the world.
Apple vs S&P 500.
From compression comes expansion. Direction TBD.$AAPL vs $SPX$ES_F $SPY pic.twitter.com/jmCXZpS8YW— David Zarling, CMT (@AdaptivCharts) November 18, 2020
Is that what's going on here in Tesla? $TSLA pic.twitter.com/AZGWmIRFLN
— J.C. Parets (@allstarcharts) November 18, 2020
$BTC.X $GBTC Less than 2K away from all time highs. Think what you want about Bitcoin. Love it, hate it, don't get it. I just know it's trending higher and that means an opportunity to profit. #Bitcoin pic.twitter.com/Eyu0AWWjQg
— Greg Rieben (@gregrieben) November 18, 2020
One bitcoin is now worth nearly ten ounces of gold. https://t.co/Ho4gfSQQjW pic.twitter.com/XIt59Kcf5t
— Bespoke (@bespokeinvest) November 18, 2020