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Today’s Summary
Tuesday, November 24th, 2020
Indices: US Stocks continued higher in today’s session. The Dow Jones Industrial Average closed above 30k for the first time, gaining 455 points or 1.54%. The S&P 500 and Nasdaq rose 1.62% and 1.31%, respectively. Small-Caps outperformed with the Russell 2000 advancing 1.94%.
Sectors: 10 of the 11 sectors closed higher. Energy led, gaining 5.14%. Real Estate lagged, closing flat on the day (0.05%).
Commodities: Crude Oil futures moved higher by 4.30% to $44.91 per barrel – its highest level since March. Gold futures continued lower by 1.81% to $1,805 per ounce.
Currencies: The US Dollar Index fell 0.37%.
Interest Rates: The 10-year US Treasury yield moved higher to 0.883%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
While Bitcoin has had a huge run in the last couple of weeks and is stretched based on many measures, its still no where near the level above its 200-day MA like it was in 2017 or 2018. $BTC $GBTC pic.twitter.com/Slskrmfouo
— Andrew Thrasher, CMT (@AndrewThrasher) November 24, 2020
Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). It’s a chart of Bitcoin over the past 4.5 years. In mid-October, we highlighted the fact that Bitcoin was breaking out of a multi-year consolidation within a strong uptrend. Here we are just over a month later, and Bitcoin has nearly doubled. It’s currently testing all-time highs around $19k and is roughly 65% above its 200-day moving average. While this seems over-extended, Andrew reminds us that it’s nowhere near an extreme for Bitcoin. In a comment to The Chart Report, Andrew Said, “Prior rallies have become much more stretched than this one, and it’s not even a close comparison. At the height of Bitcoin Mania in 2017, price was about 280% extended. Also, rallies in 2011 and 2013 got as much as 1,200% and 700% extended. This doesn’t mean Bitcoin will shoot to the moon until it’s 600% extended but it does give some context to this rally.”
Quote of the Day
“Part of being a contrarian is knowing when to go with the consensus.”
– Arun Chopra
Top Links
Bitcoin is Near All-Time Highs and the Mainstream Doesn’t Care…Yet – Visual Capitalist
Here’s a must-see infographic on Bitcoin sentiment from Visual Capitalist.
DJIA 1,000 Point Thresholds – Bespoke
The Dow crossed 30k today! In this note, Bespoke takes a look at previous 1,000 point milestones for the Dow.
Once in a Blue Moon Sentiment and Breadth – SentimenTrader
Troy Bombardia offers his perspective on market internals.
Bull Markets Die on Euphoria – StockCharts.com
David Keller explains that sentiment is becoming a concern despite other bullish developments like the recent expansion in breadth.
What Happens to Small-Caps After a Huge Monthly Gain? – A Wealth of Common Sense
With the Russell 2000 on track for its best month ever, Ben Carlson examines what has historically happened to Small-Caps after large monthly gains.
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Top Tweets
It’s official folks. Dow 30,000!
— Nick Maggiulli (@dollarsanddata) November 24, 2020
The Russell 2000 (small caps) is officially up 20% for the month of November, which would be the best month ever.
For comparison, the S&P 500 gained 20% or more during a month 5 times, but all took place in the super volatile '30s. pic.twitter.com/uomIj2xGVI
— Ryan Detrick, CMT (@RyanDetrick) November 24, 2020
$RUT weekly
Russell loves Presidential Elections. pic.twitter.com/hC6hTOjEgT
— Yuriy Matso (@yuriymatso) November 24, 2020
The Russell 2000, Nikkei, and European stocks are having their best month in decades. pic.twitter.com/zZKtj5Wcnv
— Michael Batnick (@michaelbatnick) November 24, 2020
Russel Breadth ? $IWM pic.twitter.com/UeoxtONkhe
— Pratyush Tulsian (@PrattyCharts) November 24, 2020
Close above the June high if ya really want to make things interesting…$IWM $QQQ pic.twitter.com/k3ZCK7jvSe
— Shane C. Murphy (@murphycharts) November 24, 2020
Is this ratio telling us that transports are ready to lead the market again? $IYT / $SPY pic.twitter.com/0x2BjVC1xg
— R. Alfonso Depablos (@AlfCharts) November 24, 2020
High Beta vs Low Vol
Nine. Year. Base.$SPHB $SPLV pic.twitter.com/rNwmEDpA4S— David Zarling, CMT (@AdaptivCharts) November 24, 2020
#Gold has now full backtested the 8-year secular breakout level at ~1800, which was the triple-tested resistance level from 2011-2013. Bulls would like to see this range hold and become support even if it pierces a bit lower. $GLD $GDX $GDXJ pic.twitter.com/1Gr9WeIy4n
— Tarek I. Saab (@FibLines) November 24, 2020
Another strong day for #oil. The price of crude oil has climbed to USD 45, up 33% just this month, and the highest level since early March. pic.twitter.com/ZnxT7UVang
— jeroen blokland (@jsblokland) November 24, 2020
November @markets so far:
– Dow up 13%, passes 30k, best month since 1987
– Russell 2000 up 20%, best month EVER
– S&P energy up 37%, best month EVER
– S&P financials up 19%, best month since 2009
– S&P industrials up 18%, best month EVER— Sarah Ponczek (@SarahPonczek) November 24, 2020