Friday, October 23rd, 2020
Indices: US Stocks were were mostly higher in today’s session. The Dow Jones Industrial Average inched lower by just 28 points or 0.10%. The S&P 500 and Nasdaq rose 0.34% and 0.37%, respectively. Small-Caps outperformed with the Russell 2000 gaining 0.63%.
Sectors: 9 of the 11 sectors closed higher. Communications led, gaining 0.94%. Energy lagged, falling 0.49%.
Commodities: Crude Oil futures fell 1.94% to $39.85 per barrel. Gold futures were unchanged and continue to trade around $1,905 per ounce.
Currencies: The US Dollar Index fell 0.20%.
Interest Rates: The 10-year US Treasury yield ended a six-day winning streak, falling to 0.838%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Shane C. Murphy (@murphycharts) October 23, 2020
Today’s Chart of the Day was shared on Twitter by Shane Murphy (@murphycharts). It’s a daily candlestick chart of the Regional Banking ETF, $KRE, over the past year. Regional Banks broke above their 200-day moving average this week for the first time since the crash began in February. $KRE is up more than 19% in October, putting it on track for its best month since 2016. This is happening as the US 10yr-2yr Treasury yield spread steepens to its widest level in more than two years. This yield spread is often thought of as a barometer for Banks’ profitability. Regional Banks make the majority of their profits from lending. When the 10yr-2yr yield spread steepens, Banks can make more money on loans. If the spread continues to steepen, it would be a tailwind for Regional Banks. Any improvements from Regional Banks would be a bullish development for risk assets and the broader market.
Quote of the Day
“The worst thing to call somebody is crazy. It’s dismissive.”
– Dave Chappelle
Halloween Trading Strategy: S&P 500 Up 85% of the Time – Almanac Trader
Seasonality Expert, Jeff Hirsch points out that the last four trading days in October and the first three trading days in November have a pretty bullish track record.
Where Do We (Investors) Stand? – David Cox
Portfolio Manager, David Cox highlights the most significant technical developments to be aware of.
October Conference Call: 5 Key Takeaways – All Star Charts
Steve Strazza outlines five important themes to watch over the next few weeks.
Stock Market Video Analysis for Week Ending 10/23/20 – AlphaTrend.Net
Brian Shannon recaps this week’s price action and lays out some levels of interest to keep an eye on next week.
Do You Remember The Crypto Bubble in 2017? – Rieben Financial
Greg Rieben discusses how he’s playing the latest breakout in Cryptocurrencies.
WEEK Performance – Utilities creeping higher pic.twitter.com/lBzDBshJ39
— James Boyd (@JBoyd_TDA) October 23, 2020
FAAMG stocks relative performance strength has cooled off but not turned negative as they begin to move more in step with the broad market rather than lead it. pic.twitter.com/OWUkGsEysL
— Andrew Thrasher, CMT (@AndrewThrasher) October 23, 2020
Opportunity set getting broader. pic.twitter.com/oytKjgQnxO
— Strategas (@StrategasRP) October 23, 2020
Small vs large ratio close to a big base breakout and now firmly back above 200-day moving average. Good time to review opportunities down the cap tiers! $IWM $SML $SPY $SPX pic.twitter.com/RH46S1KLfG
— David Keller, CMT (@DKellerCMT) October 23, 2020
— Steven Strazza (@sstrazza) October 23, 2020
The gap between 2-year and 10-year Treasury yields is the widest in more than two years. pic.twitter.com/rrVXnzjLIh
— Lisa Abramowicz (@lisaabramowicz1) October 23, 2020
The 2/10 Spread recently hit a 20-month high. pic.twitter.com/K1Yz5qesG2
— Eddy Elfenbein (@EddyElfenbein) October 23, 2020
is this like the others? pic.twitter.com/xLvwpVbOnY
— J.C. Parets (@allstarcharts) October 23, 2020
Rates — Small-cap / Large-cap — Value / Growth. pic.twitter.com/Vsqh3QCxnq
— Nautilus Research (@NautilusCap) October 23, 2020
— R. Alfonso Depablos (@AlfCharts) October 23, 2020
Have to admit $BTC is a beautiful chart right now. Finishing the week near the highs
— Christopher Cain, CMT (@PythonTrader) October 23, 2020