Daily Chart Report ? Tuesday, October 13th, 2020
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Today’s Summary
Tuesday, October 13th, 2020
Indices: US Stocks closed lower in today's session, snapping a four-day winning streak. The Dow Jones Industrial Average fell 158 points or 0.55%. The S&P 500 and Nasdaq moved lower by 0.63% and 0.10%, respectively. Small-Caps slightly underperformed with the Russell 2000 falling 0.74%.
Sectors: 10 of the 11 sectors closed lower. Communications was the only sector to close higher, inching up just 0.10%. Financials lagged, dropping 1.92%.
Commodities: Crude Oil futures rose 1.80% to $40.20 per barrel. Gold futures dropped 1.78% to $1,895 per ounce.
Currencies: The US Dollar Index moved higher by 0.53%.
Interest Rates: The 10-year US Treasury yield fell to 0.727%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by R. Alfonso Depablos (@AlfCharts). It's a ratio chart of the Communications sector relative to the S&P 500 over the past couple of years ($XLC/$SPY). The Tech sector tends to steal the spotlight away from the other 10 sectors. However, let's not forget that the largest stocks in the Communications sector are names that we normally think of as being Tech stocks. I'm talking about Facebook, Google, and Netflix. These three stocks combined represent a whopping 50% of the Communications sector. As Alfonso points out, this would be a logical level to see the Communications sector begin to outperform the S&P 500.
Quote of the Day
“Failure is the condiment that gives success its flavor.”
– Truman Capote
Top Links
Technicals Suggest the S&P 500 Could Jump 30% in a Current Bull Market Cycle That Will Extend to 2022, Fundstrat Says - Business Insider
This article from Business Insider highlights Fundstrat's long-term technical outlook on the S&P 500.
Measuring Market Breadth with David Keller - TD Ameritrade Network
In this clip, David Keller weighs-in the recent expansion in breadth.
The Most Volatile Stocks on Earnings: Q3 2020 - Bespoke
As we head into earnings season, Bespoke takes a look at which stocks tend to move the most after their earnings report.
The Systematic Investor Series ft Perry Kaufman - Top Traders Unplugged
In this podcast, trend following legend, Perry Kaufman discusses systematic trading and his process for risk management.
Be VERY Careful If You're Trading Peloton (PTON) - StockCharts.com
Tom Bowley warns that Peloton is overextended and due for a pullback in the near-term.