Daily Chart Report ? Friday, October 1st, 2021
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Today’s Summary
Friday, October 1st, 2021
Indices: US Stocks closed higher in today’s session with the Dow rebounding 483 points or 1.43%. The S&P 500 and Nasdaq rose 1.15% and 0.82%, respectively. The Russell 2000 outperformed, gaining 1.69%.
Sectors: None of the 11 sectors closed lower. Energy led by a wide margin, jumping 3.36%. Utilities lagged, closing unchanged.
Commodities: Crude Oil futures rose 0.95% to $75.74 per barrel – the highest level in nearly three years. Gold moved higher by 0.24% to $1,761 per ounce.
Currencies: The US Dollar Index slipped 0.18%.
Interest Rates: The 10-year US Treasury yield fell for the third straight day to 1.465%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Commodities have outperformed Stocks over the last 18 months. The last time we saw that happen was back in 2010-2011… pic.twitter.com/XYBHOzeaQo
— Charlie Bilello (@charliebilello) October 1, 2021
Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello). It’s a ratio chart of Commodities vs. Stocks over the past 20-years (CRB Index vs. S&P 500). As a reminder, when the ratio is rising, it means Commodities are outperforming Stocks and vice versa. Stocks are enjoying an above-average year, with very little downside volatility, however, the real alpha has been in Commodities. The CRB index, which consists of 19 major Commodities is up more than 37% YTD, while the S&P 500 is up 16%. Charlie points out that it has been a decade since we’ve seen Commodities outperform Stocks on a trailing 18-month basis. Ironically, this ratio bottomed out right after Crude Oil went negative in April 2020. This trend of outperformance could easily continue as investors’ performance chase this abandoned asset class.
Quote of the Day
“Speak less than you know;
have more than you show.”
– William Shakespeare
Top Links
Q3 Asset Class Performance – Bespoke
Bespoke breaks down Q3 asset class performance.
A Strong Uptrend and Bullish Continuation Pattern for this Agricultural ETF – StockCharts.com
Arthur Hill points out that the Agricultural Commodities ETF, $DBA, is attempting to break out of a bullish Cup & Handle pattern.
Will Markets Rebound in October? – CNBC
Jeff deGraaf of Rennaissance Macro Research shares his fourth-quarter outlook.
Stock Market Analysis – October 1, 2021 – Alphatrends
Brian Shannon reviews this week’s price action and lays out a few key levels to watch in the week ahead.
Is Bearish Investor Sentiment Bullish for Stocks? – LPL Financial Research
The team at LPL Financial Research analyzes the results of the most recent AAII Sentiment Survey.
Top Tweets
Here are all the longest steaks w/o a 5% correction in the past 50 years (per Ned Davis):
1. All went on to lose at least 8%
2. None devolved directly into more than a normal correction
3. The next cyclical high in $SPX was at least 2 mo and as long as 12 mo later pic.twitter.com/rH9Yd4oSRB— Urban Carmel (@ukarlewitz) October 1, 2021
Up 42.79% last month pic.twitter.com/zKZr2ZLa9X
— Ian Culley (@IanCulley) October 1, 2021
Insert some joke about ? pops cereal, idk… ? @KelloggsUS pic.twitter.com/3ricBLHU1E
— Dan J. Gorghuber, CMT (@Futures_Runner) October 1, 2021
You’re all caught up now. Thanks for reading!