Thursday, October 7th, 2021
Indices: US Stocks continued higher in today’s session with the Dow rising 338 points or 0.98%. The S&P 500 and Nasdaq gained 0.83% and 1.05%, respectively. The Russell 2000 outperformed, rising 1.59%.
Sectors: 10 of the 11 sectors closed higher. Consumer Discretionary led, gaining 1.56%. The only sector that closed lower was Utilities, falling 0.53%.
Commodities: Crude Oil futures rose 1.12% to $78.30 per barrel. Gold futures inched lower by 0.15% to $1,759 per ounce.
Currencies: The US Dollar Index was flat (0.04%).
Interest Rates: The 10-year US Treasury yield rose to a three-month high of 1.575%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Alfonso Depablos (@AlfCharts) October 7, 2021
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). The S&P 500 is having an above-average year, with very little downside volatility. However, the S&P 500 doesn’t really tell the full story of the stock market. When you look outside of Large-Caps and the S&P 500, this year has really been a trendless mess. As Alfonso points out, Mid-Caps, Small-Caps, and Micro-Caps have all been rangebound for the majority of this year. While trendless environments like this can be frustrating, there is a silver lining to it. You could view this multi-month consolidation as healthy digestion, given the impressive rally that preceded it. Typically you’d expect this consolidation to resolve in the direction of the underlying trend, which in this case is higher. But until then, the trend in stocks outside of Large-Caps continues to be sideways.
Quote of the Day
“One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do.”
– Jim Rogers
Are Stocks in A Bear Market? – All Star Charts
The team at All Star Charts examines the stealth correction that has taken place beneath the surface of the major averages.
Bullish Breadth Divergences Begin to Emerge – Potomac Fund Management
Dan Russo shares his weekly breadth analysis.
Three Outstanding Charts in the Financial Sector – Stock Charts
In this video, Jeff Huge highlights three leading stocks within a leading sector.
Nasdaq Ratio Testing 2000 Dot.com Highs For THIRD Time! – Kimble Charting Solutions
Chris Kimble breaks down a long-term ratio chart of the Nasdaq 100 vs. the Nasdaq Composite.
Neutral Sentiment Grows – Bespoke
Bespoke analyzes the results of the latest sentiment surveys.
— Greg Rieben (@gregrieben) October 7, 2021
— Gregory Krupinski (@G_krupins) October 7, 2021
40 weeks of sideways should be over soon. pic.twitter.com/pryWwsWKzq
— Yuriy Matso (@yuriymatso) October 7, 2021
— David Rath (@DJwrath) October 7, 2021
Before y'all get too excited, small- and mids- have plenty of supply to work through. pic.twitter.com/hEmrLJGlkS
— Michael Kahn, CMT (@mnkahn) October 7, 2021
Update to table showing underlying rotational “churn” and weakness under surface of still-resilient index performance (“average member decline from YTD high” = drawdowns at some point this year) pic.twitter.com/AwKdVVkVTk
— Liz Ann Sonders (@LizAnnSonders) October 7, 2021
"Stocks only go up" pic.twitter.com/KbpZe1ILGB
— J.C. Parets (@allstarcharts) October 7, 2021
— Jim Carroll (@vixologist) October 7, 2021
— John Kicklighter (@JohnKicklighter) October 7, 2021
10Yr Treasury Note Yield potentially breaking out is interesting.
Please Note… The 10yr can go up alongside the broader market. It doesn't mean the market will tank.
Charts tell me this. Turn off the news. $TNX $SPY $SPX $QQQ $XLK pic.twitter.com/aWNNcbhXes
— Sam McCallum (@honeystocks1) October 7, 2021
Copper to gold ratio. Still pointing at higher yields. Most of the time when volatility gets this tight, a big move is comping. As yields rise copper usually follows them higher. pic.twitter.com/2bYQ9eY3QU
— Jason (Perz) Boyd (@JasonBoyd138) October 7, 2021
— Ian McMillan, CMT (@the_chart_life) October 7, 2021
— J4 (@J4_doji) October 7, 2021
You’re all caught up now. Thanks for reading!