Thursday, October 22nd, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 153 points or 0.54%. The S&P 500 and Nasdaq rose 0.52% and 0.19%, respectively. Small-Caps outperformed with the Russell 2000 gaining 1.65%.
Sectors: Energy led significantly, jumping 4.13%. Real Estate lagged, falling 0.70%.
Commodities: Crude Oil futures moved higher by 1.52% to $40.64 per barrel. Gold futures dropped 1.29% to $1,905 per ounce.
Currencies: The US Dollar Index rose 0.33%.
Interest Rates: The 10-year US Treasury yield moved higher for the sixth day in a row to 0.860% – the highest level since June.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in an article by Willie Delwiche (@WillieDelwiche). The chart shows Copper futures (top), Emerging Markets (middle), and Emerging Markets vs. the S&P 500 (bottom). Copper hit its highest level in more than two years yesterday. In the article, Willie explains, “Copper strength tends to bode well for Emerging Market stocks on both an absolute and relative basis (versus the S&P 500 Index).” As you can see in the lower pane, Emerging Market stocks have persistently underperformed the S&P 500 over the past decade. The Emerging Markets ETF, $EEM, is up just 23% over the past 10-years, while the S&P 500 ETF, $SPY, is up 193%. Willie added, “My guess remains that the extended period of US equity market dominance (versus the rest of the world) is drawing to a close. Investors’ eyes should be on Copper. Will it breakout over 3.30?”
Quote of the Day
“Being a nerd really pays off sometimes.”
– Ken Jennings
Copper’s Unignorable Strength is Saying Bullish Things About the Economy – But There’s a Catch – MarketWatch
Jeff deGraaf of Renaissance Macro Research offers his thoughts on the breakout in Copper.
Bitcoin Could Surge to $14,000 as Short-Term Momentum Improves, Technical Strategist Katie Stockton Says – Business Insider
In this article, Katie Stockton shares her technical outlook on Bitcoin.
What Happens When Bonds Go Down 4% Over 20 Days? – Pivot Analytics
Pivot Analytics examines the forward returns after $TLT falls 4% or more over a rolling 20-day period.
Three Takes on the Presidential Cycle – StockCharts.com
David Keller gives a few perspectives on the Presidential Cycle.
Stick With Winners – All Star Charts
Sean McLaughlin outlines a bullish options trade on Nividia, $NVDA.
— Shane C. Murphy (@murphycharts) October 22, 2020
— Mike Moses, CMT (@DominickMike) October 22, 2020
— Rolando Santos 🌊 (@TKPTrader) October 22, 2020
— R. Alfonso Depablos (@AlfCharts) October 22, 2020
Global small-caps testing breakout levels. pic.twitter.com/pR9RnaOPpl
— Strategas (@StrategasRP) October 22, 2020
— ATMbiotechCharts (@ATMcharts) October 22, 2020
This week's bond selloff has $TLT pushing decisively below its 200-dma
— Katherine Greifeld 🎃 (@kgreifeld) October 22, 2020
10 yr pushing 84 bps
hasn't traded above its 200 day since Dec 2018
needs .865 to break above pic.twitter.com/7I05RmFBBx
— Tom Hearden (@followtheh) October 22, 2020
— jeroen blokland (@jsblokland) October 22, 2020
— Christian Fromhertz (@cfromhertz) October 22, 2020
— Nautilus Research (@NautilusCap) October 22, 2020