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Today’s Summary
Tuesday, November 2nd, 2021
Indices: Dow +0.39% | S&P 500 +0.37% | Nasdaq +0.34% | Russell 2000 +0.16%
Sectors: 9 of the 11 sectors closed higher. Materials led, gaining 1.14%. Energy lagged, falling 0.94%.
Commodities: Crude Oil futures dropped 1.13% to $82.96 per barrel. Gold futures fell 0.38% to $1,789 per ounce.
Currencies: The US Dollar Index rose 0.24%.
Interest Rates: The US 10-year Treasury yield inched lower to 1.551%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
New Daily Closing High on $IWM. Still another ~24% upside for small caps? pic.twitter.com/Y9rGN8m4Vj
— Pratyush Tulsian (@PrattyCharts) November 2, 2021
Today’s Chart of the Day was shared by Pratty Tulsian (@PrattyCharts). It’s a daily candlestick chart of the Russell 2000 ETF, $IWM, over the past 2.5 years. It finally happened! The Russell 2000 just closed at an all-time high for the first time since March. As you can see, it spent the majority of the year consolidating in a tight range at the 1.618% Fibonacci extension of the March 2020 crash. Prior to this consolidation, the Russell had surged 145% in less than a year, so you could view this multi-month consolidation as healthy digestion of those gains. This breakout is a positive sign for the broader market, as Small-Caps tend to lead the broader market higher or lower. It’s also worth noting that Small-Caps have historically outperformed Large-Caps in the fourth quarter. The Russell 2000 has finally broken out of a 9-month base and looks poised for a new leg higher.
Quote of the Day
“You can’t predict.
You can prepare.”
– Howard Marks
Top Links
Follow the Leaders with Stocks at Record Highs – Potomac Fund Management
Dan Russo looks for the strongest and weakest areas of the market.
What to Expect From Today’s FOMC Meeting – TD Ameritrade Network
In this clip, Andrew Thrasher shares his thoughts on Small-Caps, Breadth, Volatility, and more.
100,000,000 Reasons to be a Bit Concerned – SentimenTrader
Jason Goepfert points out that options traders are aggressively buying calls.
Are The Small Caps Ready to Rip? – Honey Stocks
Sam McCallum takes a look at the breakout in the Russell 2000.
Ether Could Surge 33% Within the Next 6 Months if it Holds Above This Key Resistance Level for One More Week, Fairlead Strategies Says – Business Insider
Katie Stockton offers her technical outlook on Ethereum.
Top Tweets
Small caps went nutso yesterday, with the Russell 2000 outperforming the S&P 500 by 2.5 percentage points.
That degree of small-caps' 1-day outperformance has happened 8 times since March 2020, but before then, had occurred only two times from 2008 to 2020.
— Callie Cox (@callieabost) November 2, 2021
The most bullish five days of the year ends tomorrow.
So far the S&P 500 has been up every day (4 for 4).
We'll see if tomorrow can keep it going. pic.twitter.com/6lOfEBg7Sk
— Ryan Detrick, CMT (@RyanDetrick) November 2, 2021
S&P 500 closes at an all-time high for the 61st time this year. Needs 17 more to break the record set in 1995 (77). $SPX pic.twitter.com/ck01WQgpnQ
— Charlie Bilello (@charliebilello) November 2, 2021
It's official…
New all-time closing highs for the Russell 2000 $IWM $RUT pic.twitter.com/yw6fhPc5V9
— Ian McMillan, CMT (@the_chart_life) November 2, 2021
Bulls finally get the decisive breakout they've been waiting for from mid-caps $MDY pic.twitter.com/Ut7etOsQVE
— Steven Strazza (@sstrazza) November 1, 2021
Good improvement in S&P 400 breadth following the breakout. higher-high in % above 200-day MA and the highest amount above the 50-day MA since May pic.twitter.com/ZtUUKoN0aH
— Andrew Thrasher, CMT (@AndrewThrasher) November 2, 2021
The Russell 3000 covers 98% of the investable market of $50T value, with the R1000 covering 92% and R2000 at 8%. Yet 92% of the index chatter seems to be around smalls currently. Should we move on to microcaps next? $IWB $IWM $IWC pic.twitter.com/PEJ5Amp6pT
— Jonathan Harrier, CMT (@jonathanharrier) November 2, 2021
Semis at new highs, printing a lovely breakout within a broader long-term uptrend ? $SMH ? pic.twitter.com/JZgHL2xf3J
— Grayson Roze (@GraysonRoze) November 2, 2021
Take a look at high beta stocks resolving a 5-month consolidation in the direction of the underlying trend.$SPHB pic.twitter.com/X5PAFfYku3
— Alfonso Depablos (@AlfCharts) November 2, 2021
maybe it's a car company. maybe it's a battery company. I honestly couldn't care less. After that Gap n Go the first objective has been met, and now that 161.8% extension is the new floor. IMO no reason to be long if we're below that. Next target up just under 1500 $TSLA pic.twitter.com/PceGOoKoy6
— J.C. Parets (@allstarcharts) November 2, 2021
Sentiment illustrated… in case you missed it pic.twitter.com/DW1zy0PWto
— Mark Ungewitter (@mark_ungewitter) November 2, 2021
You’re all caught up now. Thanks for reading!