Wednesday, November 17th, 2021
Indices: Dow -0.58% | S&P 500 -0.26% | Nasdaq -0.33% | Russell 2000 -1.16%
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining 0.66%. Energy lagged, falling 1.53%.
Commodities: Crude Oil futures dropped 3.97% to $77.55 per barrel. Gold futures rose 0.87% to $1,870 per ounce.
Currencies: The US Dollar Index slipped 0.11%.
Interest Rates: The US 10-year Treasury yield fell to 1.591%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Rolando Santos (@TKPTrader) November 17, 2021
Today’s Chart of the Day was shared by Rolando Santos (@TKPTrader). It’s a daily candlestick chart of Bitcoin over the past year. The candlesticks are color-coded to represent momentum as measured by RSI. Bitcoin broke out to all-time highs a few weeks ago, however, that breakout is beginning to look like a failed move. Bitcoin thrives and dives based on momentum. Momentum has been diverging negatively on each new high, and RSI is now solidly below 50. Most rallies occur when RSI is above 60 (white candles), rather than below 50 like it is now (red candles). The good news is that Bitcoin is still in a primary uptrend. However, price is currently trapped below the April highs (around $64k) and momentum is deteriorating. Some caution is warranted until those two conditions improve.
Quote of the Day
“The air goes out of the balloon much faster than it went in.”
– Howard Marks
2021 Now Has the Second Most New Highs Ever – LPL Financial Research
The team at LPL Financial Research takes a look at November seasonality.
The Biggest Fear is the Lack of Fear – Potomac Fund Management
Dan Russo highlights some key points about the current market environment.
US Equities Bullish Pullback is Setup For New Highs – See it Market
Guy Cerundolo points out that the Russell 2000 is testing its breakout level.
Stocks Most Impacted by 7-10 Year Treasuries – Bespoke
Bespoke breaks down which stocks in the S&P 500 are the most sensitive to Treasury yields.
Gold and the Dollar Have Danced Like This Only 9 Times in History – SentimenTrader
Jason Goepfert examines the relationship between Gold and the Dollar.
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The cruelest game would be if $IWM 'broke out', and then spent the next 9 months doing nothing again…
— Jonathan Krinsky,CMT (@jkrinskypga) November 17, 2021
— Greg Rieben (@gregrieben) November 17, 2021
— Andrew Adams CFA, CMT (@DayTraderGator) November 17, 2021
The past 9 times the S&P 500 was up at least 20% in a year it was higher that next year every single time.
In fact, up 11.5% on average after a 20% gain is actually better than your average year. That probably isn't something most investors realize. pic.twitter.com/RU1gP8VqW4
— Ryan Detrick, CMT (@RyanDetrick) November 17, 2021
Recent strength in S&P 500 confirmed by climb in NYSE advance-decline line (unlike during pre-September rally, before S&P 500 fell by 5.2%)
[Past performance is no guarantee of future results] pic.twitter.com/g3wMQ0KVNv
— Liz Ann Sonders (@LizAnnSonders) November 17, 2021
— Matthew Timpane, CMT (@mtimpane) November 17, 2021
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) November 17, 2021
— kkernttb (@kkernttb) November 17, 2021
Gasoline failed to break above $2.50, a historically key price level, and is continuing to move lower today. Is this going to lead to crude oil back below $77? We'll see. pic.twitter.com/NsVouvvskM
— Andrew Thrasher, CMT (@AndrewThrasher) November 17, 2021
Concerning signs for copper? Broken down past both its 50-day and 200-day MOV – though the last this happened, it soon rebounded pic.twitter.com/AOYQYJIy61
— MacroMarketsDaily Newsletter (@macro_daily) November 17, 2021
Look at the chart of the 10-year yield next to bitcoin $btcusd
Could you tell which is which without the labels?
They look almost exactly the same. Because they are both responsive to the same economic stimuli.
The best bitcoin investors watch the business cycle. pic.twitter.com/WmQhnxkxLC
— Mike Singleton, CFA (@InvictusMacro) November 17, 2021
(1/3) ProShares Bitcoin Strategy ETF is down 7.6% since it launched last month, while #BTC is down 5.7%. One of the reasons for the spread is the fund owns futures, not actual BTC…and the futures contracts are rolled over (sell expiring contract, buy other contract). pic.twitter.com/oz6rRCFJ84
— Liz Young (@LizYoungStrat) November 17, 2021
You’re all caught up now. Thanks for reading!