Thursday, November 19th, 2020
Indices: US Stocks settled higher in today’s session, with the Dow Jones Industrial Average inching up just 45 points or 0.15%. The S&P 500 and Nasdaq rose by 0.39% and 0.87%, respectively. The Russell 2000 moved higher by 0.84%.
Sectors: 9 of the 11 sectors closed higher. Energy led, gaining 1.64%. Utilities lagged, falling 1.00%.
Commodities: Crude Oil futures slipped 0.26% to $41.90 per barrel. Gold futures fell 0.66% to $1,862 per ounce.
Currencies: The US Dollar Index was more or less flat (0.03%).
Interest Rates: The 10-year US Treasury yield dropped to 0.828%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— David Zarling, CMT (@AdaptivCharts) November 19, 2020
Today’s Chart of the Day was shared on Twitter by David Zarling (@AdaptivCharts). It’s a ratio chart of Emerging Markets vs. the S&P 500 over the past four years ($EEM/$SPX). David points out that Emerging Markets could be poised to outperform US stocks over the next few months. $EEM has already broken out to multi-year highs on an absolute basis. On a relative basis, It’s breaking out from a multi-year downtrend with a bullish RSI divergence. In a comment to The Chart Report, David explained “A large portion of $EEM is Asian Tech Stocks” The top four stocks in $EEM include Alibaba, Tencent, Taiwan Semiconductor, and Samsung. These four stocks represent over 20% of the ETF. David added, “If the US Dollar continues to break down here, it would only strengthen the bull case for Emerging Markets.”
Quote of the Day
“No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.”
– Robert Rhea
Are Small and Mid Cap Stocks Ready to Lead Stock Market? – See it Market
Willie Delwiche points out that Small and Mid-Cap stocks are starting to look attractive relative to Large-Cap.
Everybody’s in the Boat? – Marea Market Musings
Dan Russo offers his thoughts on the current market environment.
Is it Time for the Oil & Gas Exploration Sector to Wake Up? – StockCharts.com
Mish Schneider breaks down a chart of the Oil & Gas Exploration ETF, $XOP.
The Most Important Index in the World Has Never Done This Before – SentimenTrader
Jason Goepfert weighs-in on Tesla’s inclusion into the S&P 500.
The Thanksgiving Trade – Almanac Trader
Seasonality expert Jeff Hirsch examines how stocks have historically performed around Thanksgiving.
There are no stocks in the S&P 500 at a new 52-week low today. In fact, Intel is the only stock in the index within 5% of its 52-week low.
— Eddy Elfenbein (@EddyElfenbein) November 19, 2020
Here's a chart of the S&P 500's average path in all years since 1950. The pink arrow shows where we are now (November 19).
Can you spot the Santa Claus rally? pic.twitter.com/jc13hcdyrd
— Callie Cox (@callieabost) November 19, 2020
Are we here?
Almost 90% of $SPX names > 200-day moving average and while that sounds frothy, it usually happens after major lows and leads to much further gains. ST weakness LT strength? pic.twitter.com/QlsseFs3Z2
— David Keller, CMT (@DKellerCMT) November 19, 2020
— Mike Moses, CMT (@DominickMike) November 19, 2020
nice looking breakout setup! pic.twitter.com/fPpbtHqHph
— KKern, TTB (@kkernttb) November 19, 2020
— 📊 Rolando Santos 📊 (@TKPTrader) November 19, 2020
Speculative options activity has taken a huge hit…$QQQ Call activity has completely erased the Aug-Sep mania spike.
Many key Tech names have seen a total buyer's implosion.
The market has done a masterful job of punishing the Aug-Sep euphoria… simply by going sideways. pic.twitter.com/zlQDHJ2gGu
— Macro Charts (@MacroCharts) November 19, 2020
— Grant Hawkridge (@granthawkridge) November 19, 2020
Synchronized surge for E.M. pic.twitter.com/cIHmT7utrT
— Strategas (@StrategasRP) November 19, 2020
Emerging Markets have underperformed US equities since 2011.
Capital has been flocking to all US-denominated assets — whether its stocks, bonds, or real estate — for years.
— Tiho Brkan (@TihoBrkan) November 19, 2020
— ATMMaterialsCharts (@ATMcharts) November 19, 2020
— Ian Culley (@IanCulley) November 19, 2020
$GLD is on pace to record the kindest 4 month losing streak since its inception.
Presently red 4 months in a row, but off just -5.54%.
Given what transpired the prior 4 months, a gain of 25.25%, the narrative here is a nice breather after a ridiculous sprint. Sounds healthy.
— Steve Deppe, CMT (@SJD10304) November 19, 2020