Daily Chart Report ? Wednesday, October 7th, 2020
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Today’s Summary
Wednesday, October 7th, 2020
Indices: US Stocks closed higher across the board in today's session with the Dow Jones Industrial Average advancing 531 points or 1.91%. The S&P 500 and Nasdaq rose 1.74% and 1.88%, respectively. Small-Caps outperformed for the fifth straight day with the Russell 2000 gaining 2.14%.
Sectors: All 11 sectors closed higher. Materials led, gaining 2.57%. Real Estate lagged but still closed higher by 0.28%.
Commodities: Crude Oil futures fell 1.77% to $39.95 per barrel. Gold futures moved higher by 0.48% to $1,891 per ounce.
Currencies: The US Dollar Index slipped 0.26%.
Interest Rates: The US 10-year Treasury yield rose to 0.795% - the highest level in nearly four months.
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 in a research note by Keith Lerner, Chief Market Strategist at SunTrust. As we get closer to Election Day, there has been a lot of breath wasted debating which areas of the market will benefit the most under each candidate. This table suggests that the sitting President doesn’t impact sector trends as much as people would like to think. As you can see, the top two sectors and the bottom two sectors remained the same under both Obama and Trump. Also, Large-Cap outperformed Small-Cap under each President. Leading up to the 2016 election, the narrative was that a Trump victory would be bad for Tech, and good for things like Steal, Coal, Energy, and Financials. Needless to say, these predictions could not have been more wrong. In the note, Keith wrote, “This speaks to secular forces and fundamental factors influencing sector returns.” The key takeaway here is that sector trends will likely continue regardless of who wins in November. In other words, the strong will likely get stronger and the weak will likely get weaker. For more on this, check out the full note here.
Quote of the Day
“The important thing is to learn a lesson every time you lose.”
– John McEnroe
Top Links
Inside the Emergence of Small-Cap Stocks - See It Market
David Keller weighs-in on the recent outperformance of Small-Cap stocks.
Investor Actions Speak Louder Than Words - Bespoke
Bespoke takes a look at a unique sentiment indicator that measures what market participants are actually doing with their money, rather than what they say they're doing.
Grab Your Magnifying Glasses for This One - All Star Charts
Tom Bruni shares his thoughts on the US Dollar and Precious Metals.
Stock Market Video Analysis 10/7/20 - AlphaTrends
In this quick video, Brian Shanon highlights some levels of interest to keep an eye in the near-term.
Government Bonds Peaking and Rolling Over? - Kimble Charting Solutions
Chris Kimble points out that the 20+ Year Treasury Bond ETF, $TLT, has formed a massive bearish reversal pattern.