Wednesday, October 21st, 2020
Indices: US Stocks closed lower in today’s session, with the Dow Jones Industrial Average falling 98 points or 0.35%. The S&P 500 and Nasdaq slipped 0.22% and 0.28%, respectively. The Russell 2000 underperformed, dropping 0.86%.
Sectors: 9 of the 11 sectors closed lower. Communications led, gaining 1.68%. Energy lagged, falling 1.91%.
Commodities: Crude Oil futures dropped 4.08% to $40.00 per barrel. Gold futures rose 0.64% to $1,928 per ounce.
Currencies: The US Dollar Index fell for the fourth day in a row, dropping 0.47%.
Interest Rates: The 10-year US Treasury yield moved higher for the fifth day in a row to 0.823% – the highest level since June.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Steven Strazza (@sstrazza) October 21, 2020
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It’s a chart of Ethereum over the past four years. Things are starting to get interesting in the crypto world. Last week, we pointed out that Bitcoin is breaking out of a multi-year consolidation and could move significantly higher. Since then, Bitcoin has climbed more than 10% and is currently trading just shy of $13,000. If you missed that breakout, Steve points out that Ethereum could be a better trade than Bitcoin at current levels. In a comment to The Chart Report, Steve said, “If I had to choose between Bitcoin and Ethereum here, I’d go with Ethereum. The risk/reward profile is far more attractive, and it has significantly outperformed Bitcoin over the past year or so. As long as it’s above $360, the bias is to the upside.”
Quote of the Day
“When you’re young, you have so much time but never enough money. When you’re old you have money but never enough time.”
– Jon Boorman
Some Things I’ve Learned Over The Last 30 Years – Broadsword Capital
Our friend Jon Boorman passed away today after a long battle with cancer. Here’s a great piece he wrote in which he shared some of the most important things he learned throughout his career. R.I.P. Jon, your contributions to our community and industry will live on forever.
Chomping at the Bit for Bitcoin – Bespoke
Bespoke takes a look at the ongoing breakout in Bitcoin.
What Bubble in Stocks? – All Star Charts
JC Parets argues that stocks are nowhere near bubble territory.
Stock Market Video Analysis 10/21/20 – AlphaTrends.Net
In this video, Brian Shanon gives a quick recap of this week’s price action and highlights some levels of interest to watch in the near-term.
Doc Copper/Gold Indicator Breaking Out Again? – Kimble Charting Solutions
Chris Kimble discusses the implications of a breakout in the Copper/Gold ratio.
Get the stock market an afternoon coffee!
In the past four trading days, the S&P 500 has climbed 0.5% intraday, only to close within 0.25% of its intraday low.
That's the longest streak of mid-day slumps since at least 1990 (as far back as my data goes).
— Callie Cox (@callieabost) October 21, 2020
This technical setup often results in explosive moves (especially within the context of large catalysts), but it won't tell you which direction.
Throw away your bias and follow the price. pic.twitter.com/W72WMvVj2n
— Yuriy Matso (@yuriymatso) October 21, 2020
As a market leader $SOX gives important clues. It is bullish for $SPY and $QQQ that the semiconductors are still above their September highs. This could obviously change, but for now it suggests the downside risk is limited in the market. $SPX pic.twitter.com/2ccIEGFcGs
— TT Trading (@TT__Trading) October 21, 2020
Getting some consolidation breakouts in 10yr & 5yr Yield with a little more work left for the 30yr. pic.twitter.com/l6et8vKFYP
— Andrew Thrasher, CMT (@AndrewThrasher) October 21, 2020
— Michael Kahn, CMT (@mnkahn) October 21, 2020
— Grant Hawkridge (@granthawkridge) October 21, 2020
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) October 21, 2020
— Urban Carmel (@ukarlewitz) October 21, 2020
— Mark Ungewitter (@mark_ungewitter) October 21, 2020
— Lisa Abramowicz (@lisaabramowicz1) October 21, 2020
— Jason (@JasonPerz138) October 21, 2020