Tuesday, October 29th, 2019
Indices: US stocks were slightly lower in today’s session. The Dow Jones Industrial Average slipped 19 points or 0.07%. The Nasdaq was the weakest of the major averages, falling 0.59%. On a brighter note, the Russell 2000 gained 0.33%.
Sectors: Health Care led, gaining 1.42%. Communications and Technology lagged, with both sectors falling 0.91%.
Commodities: Crude Oil futures fell 0.57% to $55.51 per barrel. Gold futures moved lower by 0.36% to $1,491 per ounce.
Currencies: The US Dollar Index slipped 0.08%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.837%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
time for the small caps to pick up the slack? potential for a leg two into year-end… pic.twitter.com/d8BBK5FY5O
— Linda Raschke (@LindaRaschke) October 29, 2019
Today’s Chart of the Day was shared on Twitter by Linda Raschke (@LindaRaschke). It’s a weekly bar chart of the Small-cap Russell 2000 index, going back three years. The Russell 2000 is the only major index that hasn’t reached a new high so far in 2019. The index spent the majority of the year chopping back and forth in a sideways trading range while underperforming its Large-cap peers. Linda points out that the index is currently testing the upper bounds of its trading range. Last week, we explained that Small-caps have a seasonal tendency to begin outperforming Large-caps around this time of year. If Small-caps can break out and begin to outperform Large-caps into the end of the year, it would be a big positive for the broader market.
Quote of The Day
“We made the best decision based on what we knew at the time.”
– Eileen Collins (Astronaut)
Global Equities: The New Bull Market – Topdown Charts
Callum Thomas examines the strength and breadth of the rally in global equities.
Biotech ETF Makes a Statement – StockCharts.com
Arthur Hill of StockCharts.com breaks down the technicals of two popular Biotech ETFs, $IBB and $XBI.
Prestige Worldwide – The Reformed Broker
Josh Brown shares some interesting charts from Jon Krinsky that show that stocks around the world are breaking out from multi-year bases.
Stock Market Price Action Recap – The Trade Risk
In this video, Evan Medeiros reviews some notable technical developments that have occurred this week.
Typical November Trading: First Month of “Best Months” – Almanac Trader
Seasonality expert, Jeff Hirsch explains how stocks tend to perform in November.
Top 10 Tweets
Will there be a chase into year-end?
Well, the previous 7 times the S&P 500 was up >20% at the end of October saw November up 7 times and December up 6 times. pic.twitter.com/8SY0ZjIGxi
— Ryan Detrick, CMT (@RyanDetrick) October 29, 2019
I consider this the most important chart in the world right now.
The Stock/Bond Ratio is breaking out of a massive 2-year compression, confirming the $SPX breakout.
Trend momentum is *just beginning* to expand – a potential major & historic rally getting started. pic.twitter.com/WQQKeJmiKI
— Macro Charts (@MacroCharts) October 29, 2019
The % of S&P 500 stocks in a correction has fallen to 30% for the first time in more than 100 days.
— SentimenTrader (@sentimentrader) October 29, 2019
S&P may be at all time highs but it hasn't yet broken key trend line resistance. Gold hasn't broken support 1477. USDJPY hasn't closed above key resistance 109.00. And DJIA, Trannies and RTY all still below all time highs. Fed and Payrolls should break the intransigence. pic.twitter.com/fI23MxVqnC
— James Brodie CMT (@jamesrbrodie) October 29, 2019
ratio is close to '17 – '18 highs pic.twitter.com/h4BM9WDExL
— Christian Fromhertz (@cfromhertz) October 29, 2019
— David Keller, CMT (@DKellerCMT) October 29, 2019
There’s not a lot of history here but what we do have is certainly cautionary for the US$. In fact, given how momentum has weakened (it’s in neg. territory) we’re wondering how come the US$ isn’t lower already? pic.twitter.com/8awzUbXhE8
— Wolfe Daily Howl (@WolfeDailyHowl) October 29, 2019
Buybacks may be evil, but companies that do them most are, in fact, breaking out. pic.twitter.com/VisoPArPyB
— Tom Bruni, CMT (@BruniCharting) October 29, 2019
— Mark Ungewitter (@mark_ungewitter) October 29, 2019
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) October 29, 2019
Wednesday, November, 20th – New York Chapter Meeting featuring Gina Martin Adams, CMT, CFA
Thursday, November, 21st – Washington DC/Baltimore Chapter Meeting featuring Katie Stockton, CMT
You’re all caught up now. Thanks for reading!