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Daily Chart Report ? Thursday, October 3rd, 2019

October 3, 2019

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Today’s Summary
Thursday, October 3rd, 2019

Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 122 points or 0.47%. The Nasdaq was the strongest of the major indices, advancing 1.12%.

Sectors: All 11 sectors were positive. Technology led, gaining 1.23%. Utilities lagged but still closed higher by 0.24%.

Commodities: Crude Oil futures slipped 0.28% to $52.49 per barrel. Gold futures rose 0.41% to $1,514 per ounce.

Currencies: The US Dollar Index inched lower 0.10%.

Interest Rates: The US 10-year Treasury yield fell to 1.534%.

Here are the best charts, articles, and ideas being shared on the web today!

Chart of the Day

Today’s Chart of the Day was shared on Twitter by Scott Redler (@RedDogT3). It’s a daily candlestick chart of the S&P 500 ETF, $SPY. Scott uses this chart to highlight a “Red Dog Reversal” pattern. The first example is the candle from October 1st, where price broke out to a 4-day high but then quickly reversed lower. As you can see, this reversal was followed by a gap lower yesterday and a big red candle. The second example is from today’s candle where price broke below yesterday’s low of  $286.64, and the quickly reversed higher to reclaim the $286.64 level. Scott explains: “It caught shorts off guard that added, and longs that got stopped out. It creates a fast action area for tactical Cash Flow.” It’ll be interesting to see if today’s reversal will follow through to the upside tomorrow.

Quote of The Day

“If you can’t take a small loss, sooner or later you will take the mother of all losses.”
– Ed Seykota (Systematic Trader)

Top Links

Have a Little More Pain Left in October: Stock Trader’s Almanac’s Hirsch – CNBC
Seasonality Expert, Jeff Hirsch made an appearance on CNBC this afternoon to talk about “Octoberphobia.”

Discussing Equities, Volatility & Tariffs on TD Ameritrade Network – Thrasher Analytics
Technical Analyst and Volatility Expert, Andrew Thrasher shares his thoughts on the latest dip in Equity Markets.

Did the Market Bottom or Bounce? – Market Gauge 
In this quick read, Michele Schneider lays out some key levels and industry groups to keep an eye on.

S&P 500 Could Drop to 2,100 in First Quarter, ICAP’s Walter Zimmermann – Bloomberg
Walter Zimmermann of ICAP Technical Analysis examines the bearish rising wedge pattern on the S&P 500.

Maintaining Perspective as We Navigate a Noisey Start to Q4 – RW Baird
Here’s a note from Baird discussing the current market environment, including commentary on Volatility, Semiconductors, Copper, Gold, and Bond Yields.

Top 10 Tweets


Upcoming Events

Thursday, October 3rd – CMT Association New York Chapter Meeting Featuring Todd Sohn, CMT

Thursday, October 3rd – Atlanta Chapter Meeting Featuring Katie Stockton, CMT

Sunday, October 6th – A Look At The Markets Into Next Week Using TrendSpider w/ Guest Patrick Dunuwila from “The Chart Report”

Wednesday, October 9th – Webcast: “The Market Between Now And Year-End” with Ralph Acampora, CMT

You’re all caught up now. Thanks for reading!