Sponsored By:
Today’s Summary
Wednesday, October 27th, 2021
Indices: Dow -0.74% | S&P 500 -0.51% | Nasdaq 0.00% | Russell 2000 -1.90%
Sectors: 1 of the 11 sectors closed higher. Consumer Discretionary was the only sector that gained, inching up 0.22%. Energy lagged, falling 1.87%.
Commodities: Crude Oil futures dropped 3.06% to $82.06 per barrel. Gold futures rose 0.25% to $1,798 per ounce.
Currencies: The US Dollar Index slipped 0.11%.
Interest Rates: The US 10-year Treasury yield fell for the fourth straight day to 1.543%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$IWM I've seen a lot of smallcap bashing as $SPX makes new highs. But come on, look at the monthly chart; it's a bull flag. If any stock ran up 145% in a year and sat for a while consolidating, it would look pretty juicy, and it does.@TrendSpider https://t.co/GRyaOaDqoP
— Jonathan Harrier, CMT (@jonathanharrier) October 27, 2021
Today’s Chart of the Day was shared by Jonathan Harrier (@jonathanharrier). It’s a monthly candlestick chart of the Russell 2000 over the past six years. The Russell 2000 has been moving sideways for the majority of 2021, while other major indices have continuously made new highs. At this point, it really does feel like a never-ending story. However, Jonathan points out that this is healthy price action given the fact that the Russell 2000 ran up 145% in less than a year prior to this consolidation. As we know, consolidations typically resolve in the direction of the underlying trend, which in this case is higher. Mid-Caps recently broke out of a similar multi-month consolidation, so it wouldn’t be surprising if Small-Caps did the same soon. It’s also important to note that Small-Caps tend to outperform Large-Caps over the next few months.
Quote of the Day
“Most people become anxious about losses, yet successful speculators have learned that an essential ingredient to winning is to make it OK to lose.”
– Van K. Tharp
Top Links
Here Comes One of the Best Days of the Year (and the Best Week and Month) – LPL Financial Research
The team at LPL Financial Research points out that the next few days have historically been the best days of the year for Stocks.
Running Room Into the End of the Year – Potomac Fund Management
Dan Russo highlights some key points about the current market environment.
Tesla (TSLA) Not Enough To Lift ARK Innovation (ARKK) – Bespoke
Bespoke points out that the popular ARK ETFs continue to underperform the S&P 500.
Gold Mining Stocks are Surging…and Have a Lot To Prove – SentimenTrader
Jason Goepfert examines the recent strength in Gold Mining stocks.
Mapping the Biggest Companies By Market Cap in 60 Countries – Visual Capitalist
Here’s a cool infographic that shows the largest companies in each country around the world.
Top Tweets
After rising 9 of the past 10 sessions, and trading up more than 6% from the low 10 days ago, stocks pull back -0.50%.
Quick, everyone duck for cover!
— Steve Deppe, CMT (@SJD10304) October 27, 2021
Mega Caps holding up the market today pic.twitter.com/jfDX3F1ILX
— Jack (@alphacharts365) October 27, 2021
Equally weighted S&P500 ($RSP) making a new relative strength low vs. Mega-Cap. S&P 100 ($OEF).
Its not large beating small, its Mega beating everything. pic.twitter.com/pvRbkkvZAE
— Ken Goodreau, CMT (@KenGoodreau) October 27, 2021
Today's update….. still sideways $IWM $IWC pic.twitter.com/aUP5541OYi
— Grant Hawkridge (@granthawkridge) October 27, 2021
$AAPL 10m BO in Jun$NFLX 1yr BO in Aug$MSFT BO last week$GOOGL BO this week (in progress) pic.twitter.com/ZvjG8YqEPQ
— Brian G (@alphacharts) October 27, 2021
Tech sector back at late August/early September highs and the 261.8% Fibonacci extension level — big pivot point to watch. $XLK pic.twitter.com/j1NGfMEOWJ
— Matthew Timpane, CMT (@mtimpane) October 27, 2021
The S&P 500 entered the day up 6.2% MTD. Historically, when the S&P 500 has rallied at least 5% MTD headed into the final three trading days of the month, those final days of the month have tended toward weaker than normal performance: https://t.co/yNwK0k0e7m pic.twitter.com/hRmYWcokdn
— Bespoke (@bespokeinvest) October 27, 2021
Clean energy likes the very end of the year. Maybe it vies for attention with all the lumps of coal dolled out. @EquityClock $ICLN https://t.co/9lYzizua3z pic.twitter.com/1ul9PAnJfd
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 27, 2021
Head and shoulders tops need not always produce a bear market to the implied target or beyond. This pattern can also fail (bullish) or morph into a larger congestion (exhausting). $BTCUSD pic.twitter.com/8f0E0HqXn2
— Peter Brandt (@PeterLBrandt) October 27, 2021
Is this another one of those epic "Not A Head & Shoulders Top", or is this actually one of those? #bitcoin $btcusd pic.twitter.com/eEUQzJPI8v
— J.C. Parets (@allstarcharts) October 27, 2021
See you guys in a few years$IWM pic.twitter.com/l83zSDRWsg
— David Zarling, CMT (@AdaptivCharts) October 27, 2021
You’re all caught up now. Thanks for reading!