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Today’s Summary
Wednesday, October 30th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 115 points or 0.43%. The S&P 500 and Nasdaq both ended up 0.33%, while the Russell 2000 slipped 0.27%.
Sectors: Utilities led, gaining 0.88%. Energy lagged, falling 2.04%.
Commodities: Crude Oil futures fell 0.77% to $55.08 per barrel. Gold futures rose 0.40% to $1,496 per ounce.
Currencies: The US Dollar Index fell 0.21%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.777%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The Dow Jones is just starting to move out of a 21-month consolidation. $DIA pic.twitter.com/lT3j4Rj5Yk
— Joseph Fahmy (@jfahmy) October 30, 2019
Today’s Chart of the Day was shared on Twitter by Joe Fahmy (@jfahmy). It’s a weekly bar chart of the Dow Jones Industrial Average ETF, $DIA. Joe points out that the Dow is attempting to break out of a 21-month consolidation. This is important because the longer the sideways consolidation, the larger the subsequent move tends to be. In other words, the bigger the base, the higher in space! Markets can correct in two ways: through price (sharp sell-off) or through time (sideways consolidation). Some argue that the last 21-months of sideways price action have been a cyclical bear market within a secular bull market. The Dow currently sits less than 1% away from an all-time high. A break out from this multi-month consolidation could mark the beginning of the next leg of the secular bull market.
Quote of The Day
“Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.”
– Carl Icahn (Hedge Fund Manager)
Top Links
Emerging Markets Ready for a Comeback? – Nasdaq
Katie Stockton of Fairlead Strategies discusses the ongoing breakout in Emerging Markets.
Smart Money vs. Dumb Money is Getting Extreme – Sentiment Trader
Jason Goepfert examines the growing discrepancy between the opinions of the “Smart Money” and the “Dumb Money.”
Higher Highs as the Fed Makes Lower Lows – Market Buzz
Greg Schnell recaps some of the latest technical developments and shares some actionable chart setups.
S&P 500 Index Testing 11-Year Fibonacci Breakout Level – Kimble Charting Solutions
Chris Kimble takes a look at a long-term chart of the S&P 500 and points out that the index is testing a key Fibonacci level.
BofA Merrill’s Paul Ciana Recommends Buying Bonds, Shorting Dollar-Yen – Bloomberg
Bank of America’s Technical Strategist, Paul Ciana made an appearance on Bloomberg today to present his outlook on the 10-year Treasury yield and the USD/JPY currency pair.
Top 10 Tweets
Today was the 9th time that Fed cut rates and SPX closed at an ATH. pic.twitter.com/oUFr6s8ATa
— Alexander Aljechin (@aaljechin) October 30, 2019
Another new high on the S&P 500, another day without an expansion in the number of stocks making new highs. pic.twitter.com/tbRgYjXkZv
— Willie Delwiche (@WillieDelwiche) October 31, 2019
Just when you think Transports will get out of the muck…$XTN pic.twitter.com/vNw6EBJ1yh
— Aaron (@ATMcharts) October 30, 2019
Focus on the present.
Today the conditions look nothing alike November 2018, just before a sharp stock market meltdown.
Equity prices are breaking to new highs, while credit spreads, could break below support, becoming even more narrow (bullish signal). $SPY $LQD pic.twitter.com/etfxsXbUTa
— Tiho Brkan (@TihoBrkan) October 30, 2019
Value Line Geometric Composite $VALUG Testing Post-2018 Down Trendline $VLG #TrendlineWednesday pic.twitter.com/bP55A5KLVn
— Dana Lyons (@JLyonsFundMgmt) October 30, 2019
IPO ETF still up 30% YTD in a death year for IPOs, or so I am told pic.twitter.com/sx81CH4wZt
— BOO!-ke Kawa (@LJKawa) October 30, 2019
Rates have been going down for a loooooonnnnngggg time… $TYX U.S. 30 year yields#WayBackWednesday pic.twitter.com/5V2VMVIscK
— David Cox, CMT, CFA (@DavidCoxWG) October 30, 2019
What's more important/market-moving: the Dollar's slide or risk appetite post FOMC? Consult $USDJPY which accounts for both themes pic.twitter.com/2UG0jLVQnL
— John Kicklighter (@JohnKicklighter) October 30, 2019
Junior Gold Miners vs Price of Gold $GDXJ $GLD. At key point. Calling Jim Morrison! #BreakOnThru pic.twitter.com/xTRVCNitta
— Hedgehog Trader (@HedgehogTrader) October 30, 2019
It took 18 months but the market gods may just finally be coming around to Powell. pic.twitter.com/7JP7Rxs776
— Bespoke (@bespokeinvest) October 30, 2019
Upcoming Events
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!