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Today’s Summary
Tuesday, September 29th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 131 points or 0.48%. The S&P 500 and Nasdaq slipped 0.48% and 0.29%, respectively. The Russell moved lower by 0.37%.
Sectors: 10 of the 11 sectors closed lower. Communications was the only sector to close higher, inching up just 0.10%. Energy lagged, falling 2.75%.
Commodities: Crude Oil futures dropped 3.23% to $39.29 per barrel. Gold futures rose 1.10% to $1,903 per ounce.
Currencies: The US Dollar Index moved lower by 0.42%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.650%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
If this ratio is above 1.60, the alpha remains in the stock market, while the opportunity cost is in the Bond market $QQQ $TLT pic.twitter.com/YOIhtPU9mM
— Steven Strazza (@sstrazza) September 29, 2020
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It’s a ratio chart of the Nasdaq 100 vs. Long Term Treasury Bonds over the past few years ($QQQ/$TLT). When the ratio is rising, as it has been, it means the Nasdaq is outperforming Bonds. Steve points out that this is a logical place for Stocks to reassert their leadership relative to Bonds. In a comment to The Chart Report, Steve told us, “This ratio has already broken out of a multi-year base, and it’s currently retesting the breakout level around 1.60. As long as the ratio holds up above 1.60, you want to be overweight Stocks and underweight Bonds.”
Quote of the Day
“I tried to detect those stocks that resisted the market decline. I reasoned that if they could swim against the stream, they were the ones that would advance most rapidly when the current changed.”
– Nicolas Darvas
Top Links
This Technical-Analysis Pattern Suggests the S&P 500 Could Jump 30% From Current Levels, According to BofA – Business Insider
This article highlights Bank of America’s technical outlook on the S&P 500.
Midweek Stock Market Recap and Technical Analysis – The Trade Risk
Evan Medeiros breaks down the recent price action in all of the major sectors and indices.
Biotech Sector ETF Reversal Higher Triggers Buy Signal – See it Market
Guy Cerundolo explains why he’s bullish on Biotech at these levels.
Seasonal Weakness as Stocks Test Resistance – The Final Bar
In this episode of The Final Bar, Guest Jonathan Krinsky, of Baycrest Partners offers his thoughts on Growth vs. Value and Seasonality.
No, This Isn’t a Repeat of the Dot-Com Bubble – Of Dollars and Data
Data Scientist, Nick Maggiulli contrasts the current market environment with the Dot-com bubble.
Top Tweets
$SPY bumping the 50 dma as the declining 21 dma starts to roll into the picture. Key level being developed? pic.twitter.com/uF36WukHtH
— Dan Russo, CMT (@DanRusso_CMT) September 29, 2020
$ES, 1h
Analyzing ES on the lower timeframes is the most reliable way to see proper demand and supply zones. The fact that the futures are being traded overnight makes a pattern recognition task much easier.
3365 and 3425 are key supply zones
3200 is the ultimate demand zone pic.twitter.com/FfKrPZ0ioL
— Yuriy Matso (@yuriymatso) September 29, 2020
And now for something different, just because we can in #StockChartsACP ?♂️
Here's a look at where the 5-, 20-, 50- & 100-day SMAs for $SPX are sitting relative to the 200-day (green shaded area)
All remain clear above the 200, and both the 50-day and 100-day are still rising. pic.twitter.com/OJqM31CByR
— Grayson Roze (@GraysonRoze) September 29, 2020
As of yesterday, more than 93% of stocks in S&P 500 were advancing, strongest breadth since June & among best breadth days this year @Bloomberg
[Past performance is no guarantee of future results] pic.twitter.com/Xup7huKxNS— Liz Ann Sonders (@LizAnnSonders) September 29, 2020
Yesterday was an $SPX 90% upside-volume day. March 10th and 13th cases were painfully early. March 24th, April 8th, and May 18th cases preceded sharp rallies. Leaning toward latter interpretation, given early #CyclicalBullMarket context. pic.twitter.com/3ONQyhtT8q
— Mark Ungewitter (@mark_ungewitter) September 29, 2020
This is about as tight as we've seen the daily Bolli's on $TLT the past decade.
Big one's on deck. pic.twitter.com/Fge8F8mCRE
— Steve Deppe, CMT (@SJD10304) September 29, 2020
$CL_F $USO Crude oil WTI continues to struggle at the 200 day moving average. $XLE $XEG.CA pic.twitter.com/vP7BqjrJB1
— Greg Rieben (@gregrieben) September 29, 2020
In this time of extreme uncertainty, one thing's for sure: the market hates uncertainty. With tonight’s 1st debate sure to showcase how the dirty game of politics can stir-up even more uncertainty, history suggests that the $vix is prepping for a pre-election run-up. pic.twitter.com/erlFUrqWxk
— Extract Analytics (@XtractAnalytics) September 29, 2020
Stock Market Performance For Democrats and Republicans, using S&P data going back to 1928:
(via @CNBC) pic.twitter.com/bxvOSrvvt5
— Carl Quintanilla (@carlquintanilla) September 29, 2020
Latest CNN Fear & Greed reading pic.twitter.com/o61lNPudRM
— Joseph Fahmy (@jfahmy) September 29, 2020