Daily Chart Report ? Wednesday, November 4th, 2020
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Today’s Summary
Wednesday, November 4th, 2020
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average gaining 368 points or 1.34%. The S&P 500 and Nasdaq gained 2.20% and 3.85%, respectively. Small-Caps significantly underperformed, with the Russell 2000 closing flat on the day (+0.05%).
Sectors: 7 of the 11 sectors closed higher. Health Care led, jumping 4.44%. Materials lagged, falling 1.70%.
Commodities: Crude Oil futures continued higher by 3.96% to $39.15 per barrel. Gold futures fell 0.74% to $1,896 per ounce.
Currencies: The US Dollar Index rose 0.15%.
Interest Rates: The 10-year US Treasury yield dropped to 0.758%.
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 Arthur Hill (@ArthurHill). It’s a daily bar chart of the Russell 2000 ETF, $IWM, over the past six months. Yesterday, we highlighted the potential for a post-election surge in Small-Caps. We clearly didn’t see that today, as the Russell 2000 underperformed the S&P 500 by the second widest margin in the past decade. But as we know, one day does not make a trend. Arthur points out that there are a number of reasons to favor Small-Caps here. For starters, $IWM formed a bullish island reversal pattern over the past week. Secondly, it was the only one of the four major indices to have broken above its September highs last month. In general, Small-Caps are risker than their Large-Cap peers. For this reason, they serve as a good barometer of risk appetite for the broader market. The idea is, if there’s demand for the smaller/risker stocks, then we’re likely in a market environment where stocks, as an entire asset class, look attractive.
Quote of the Day
“The world has a funny way of not coming to an end.”
– James Grant
Top Links
2 Post-Election Charts You Need to See – LPL Financial Research
LPL Financial Research shares two interesting charts to keep in mind as we look past the election.
Utilities Stocks Power Higher As Sector Shows Strength – See it Market
David Keller lays out the bull case for the Utilities sector.
Investors Hands Were Tipped Last Night! – Stock Market Today
Dan Russo offers his thoughts on yesterday’s wild overnight session and highlights a few trends worth watching in the near-term.
Stock Volatility In Sight – Dana Lyons
Dana Lyons examines the implications of an unusually high ‘Excess VIX’ reading.
Even if We Knew – The Irrelevant Investor
Here’s a good read from Michael Batnick. He explains that even if you knew what would happen in the future, you still probably wouldn’t know how the market would react.
Top Tweets
You’re all caught up now. Thanks for reading!