Monday, October 21st, 2019
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 57 points or 0.21%. The S&P 500 and the Nasdaq closed higher by 0.69% and 0.91%, respectively. The Russell 2000 was the strongest of the major averages, gaining 0.95%.
Sectors: Energy led, gaining 1.79%. Materials lagged, falling 0.31%.
Commodities: Crude Oil futures fell 0.65% to $53.49 per barrel. Gold futures fell 0.43% to $1,488 per ounce.
Currencies: The US Dollar Index inched higher by just 0.05%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.803%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Another question I'm pondering today… what happens if the Mid-Caps break out here? Some big questions I think will be answered this week to give us market direction… anyone see it differently? pic.twitter.com/xiuJKclcPp
— Sam McCallum (@honeystocks1) October 21, 2019
Today’s Chart of the Day was shared on Twitter by Sam McCallum (@honeystocks1). It’s a weekly candlestick chart of the S&P MidCap 400 ETF, $MDY. Sam highlights the fact that price has been coiling into a triangle pattern over the past year. We often compare this pattern to the tightening of a spring. As the range contracts, energy builds up within the spring. When one of the pressure points is removed, the spring will explode in that direction. Similarly, as price works its way into a tighter range and moves toward the apex of this pattern, we’d expect a strong breakout in one direction or the other. Sam points out that price is getting very close to that decision point and that we could see a breakout as early as this week.
Quote of The Day
Seasonal Tailwinds for Small-Caps – The Chart Report
In this report, we take a look at stock market seasonality and explain that we’re entering a bullish time of year for Small-caps versus Large-caps.
Global Stocks Starting to Inflect Higher – The Reformed Broker
Josh Brown shares an interesting chart from Ari Wald of Oppenheimer that shows stocks around the world are on the verge of breaking out.
Coffee Futures Poised to Bounce Off 13-year Lows – Bloomberg
Thomas Thorton of Hedge Fund Telemetry made an appearance on Bloomberg today to breakdown a chart of Coffee Futures.
Bulls Still Have Support for Upside Breakout – Ciovacco Capital Management
Chris Ciovacco lays out several important charts to keep an eye on.
Should You Jump on the Small-Cap Bandwagon? – Forbes
Technician and Forbes Columnist, Tom Aspray shares his thoughts on the current market environment and focuses on the recent strength from Small-cap stocks.
Top 10 Tweets
— Scott Redler (@RedDogT3) October 21, 2019
The drop in $BA means we need to issue a Dow Blindness warning for today's market. Dow flattish with a 100-point drag from Boeing, but S&P 500 up half a percent, market breadth more than 2:1 to the good. pic.twitter.com/LceYDtxoLB
— Michael Santoli (@michaelsantoli) October 21, 2019
— KKern, TTB (@kkernttb) October 21, 2019
Depending on where you fall in the diagonal lines vs horizontal lines schism, $BKX has either broken out or is just shy of doing so. I'd call it a step in the right direction. pic.twitter.com/5hhdTSxRWC
— Willie Delwiche (@WillieDelwiche) October 21, 2019
EWZ interesting too! EWJ=one of the RS leaders…point being, a lot of these global ETFs have been looking perky indeed the past week…. pic.twitter.com/iyYNstwgRx
— Linda Raschke (@LindaRaschke) October 21, 2019
— Graddhy – Commodities TA+Cycles (@graddhybpc) October 21, 2019
The 10-year / 2-year Treasury yield curve is pushing through another another significant resistance. Reversed inversion in late August, cleared +0.10 start of Oct and now moving above 2-year trend today. #Recession pic.twitter.com/qqL9aSQfrL
— John Kicklighter (@JohnKicklighter) October 21, 2019
a candlestick view of 10-year U.S. yields ($TNX) – traded close to the 2016 lows and a simple fib retracement to retrace the last year decline would see us expect 2.1-2.55% again… pic.twitter.com/E61Rr45Hbi
— David Cox, CMT, CFA (@DavidCoxWG) October 21, 2019
the market doesn't make it easy, does it?$JPM broke out in Sept = yeah!
the breakout failed = ahh!
buyers refused to give up and now it's breaking out again = yeah again! pic.twitter.com/lKkaSddAJt
— BostonCharts (@bostonchaahhts) October 21, 2019
— The Chartist (@thechartist) October 21, 2019
Tuesday, October 22nd – New York Chapter Meeting Featuring Sam Stovall
Thursday, October 24th – Northern Ohio Chapter Meeting Featuring JC Parets, CMT
Saturday, October 26th – Trade Ideas Summit 2019
Monday, October 28th – United Kingdom Chapter Meeting featuring Ralph Acampora, CMT
You’re all caught up now. Thanks for reading!