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Today’s Summary
Wednesday, November 25th, 2020
Indices: US Stocks were a mixed bag in today’s session. The Dow Jones Industrial Average fell 174 points or 0.58%. The S&P 500 inched lower by just 0.16%, while the Nasdaq rose 0.47%. The Russell 2000 closed lower by 0.46%.
Sectors: 4 of the 11 sectors closed higher. Utilites led, rising 0.26%. Energy lagged, falling 2.33%.
Commodities: Crude Oil futures moved higher by 1.78% to $45.71 per barrel. Gold futures were flat and continue to trade around $1,806 per ounce.
Currencies: The US Dollar Index fell 0.25% to its lowest level in more than two years.
Interest Rates: The 10-year US Treasury yield moved slightly lower to 0.878%.
**Reminder: The US Stock Market and Bond Market will be closed tomorrow, November 26th, in observance of Thanksgiving Day. Both will reopen for a half-day on Friday, November 27th.**
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The rally led by laggards.
S&P 500 month-to-date top performers are down an average of 40% this year (that's after rising between 47% and 84% the past few weeks). pic.twitter.com/xZ09iBZEBs
— Michael Santoli (@michaelsantoli) November 25, 2020
Today’s Chart of the Day was shared by Michael Santoli (@michaelsantoli). The table shows the top-performing stocks in the S&P 500 month-to-date. The S&P 500 is up 11% so far in November, putting it on track for the second-best monthly gain in the past decade. Michael points out that this post-election rally has been unique because it has been led by long-term laggards rather than the usual suspects like Mega-Cap Tech. As you’ll notice, many of these stocks are Energy/Oil-related names that are still down double-digits this year. So is this a junk-led rally? You could call it that, but that would dismiss how positive this is for the broader market in the long-run. It’s constructive to see leading sectors like Tech take a breather while lagging sectors like Energy play catch-up. As the great technician Ralph Acampora once said, “rotation is the lifeblood of bull markets.”
Quote of the Day
“Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.”
– Oprah Winfrey
Top Links
30,000 Reasons To Be Thankful – LPL Financial Research
The team at LPL Financial Research serves up a feast of market stats to impress your family/friends with at the Thanksgiving table this year.
After Market’s November Surge, There May Be Less Chance of a Big ‘Santa Rally’ – CNBC
Several respected technicians share their thoughts on the S&P 500 as we head into the final month of the year.
Small Cap Stocks See Bullish Reversal in Relative Performance – See it Market
Chris Kimble takes a look at the long-term outlook for Small-Caps relative to Large-Caps.
Snapping for a Second Chance – All Star Charts
Sean McLaughlin outlines a bullish options trade on Snap Inc. ($SNAP).
A Month To Be Thankful For – Bespoke
Bespoke examines the strongest stocks and sectors within the Russell 1000 so far this month.
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Top Tweets
The Dow is currently having its best month since January 1987.
Yes, that '87. But don't forget it added another 32% the next 7 months after January '87's huge surge. pic.twitter.com/i2a9jBMoDy
— Ryan Detrick, CMT (@RyanDetrick) November 25, 2020
Quick glance at 40% of $QQQ and 20% of $SPY.
All consolidating within uptrends. Obviously, the way these break will have big impacts on the indexes, retirement accounts, etc. pic.twitter.com/HhtBivYPsT— Gregory Krupinski (@G_krupins) November 25, 2020
3 std dev move on $RUT small caps on the 50 month bands…some examples of when this has happened before highlighted….it's pretty rare pic.twitter.com/mFBHwumG5V
— No Growth Soccer Mom (@SoccerMomTrades) November 25, 2020
$XLF changing the game up pic.twitter.com/WhBOp7D0aA
— Grant Hawkridge (@granthawkridge) November 25, 2020
Several ETFs are up more than 30% in November. This group features old school energy, clean energy, Mary Jane, airlines, bitcoin and rare metals. $XES $GBTC, $YOLO, $PBW, $REMX pic.twitter.com/sCICd16BVG
— Arthur Hill, CMT (@ArthurHill) November 25, 2020
Crude Oil breaking to the upside and at 9 month high $USL $CL_F pic.twitter.com/HG3NqtFdn6
— Greg Harmon (@harmongreg) November 25, 2020
Gold Daily Sentiment approaching capitulation, while price tightens near 2011 highs.
Soon this could be ready to go – every year since 2013, Gold started a huge rally from similar conditions.
2020 holidays might still be on schedule… will update this soon, stay tuned. pic.twitter.com/XMighoCv51
— Macro Charts (@MacroCharts) November 25, 2020
And there it goes. Dollar index breaks below 92, falling to lowest level in over 2.5 years. pic.twitter.com/ivjVbM16qH
— David Ingles (@DavidInglesTV) November 25, 2020
The Dollar Index is trying to close today below an important support line at $92. I've been longer-term bearish on the dollar with potential downside to $80 as long as we remain below the 80-month moving average. $DXY pic.twitter.com/zI8JjnuKxz
— Matthew Timpane, CMT (@mtimpane) November 25, 2020
$DXY | Aggregate short USD positioning is stretched but it can become more so. The bear case is near consensus + synthetic short USD trade is crowded. DXY is at bottom of 5yr channel but not expecting it to hold. Thinking it dips to 18' low before rebounding/unwinding positioning pic.twitter.com/Sc0MDCx29H
— Alex Barrow (@MacroOps) November 25, 2020
Did you know that the S&P 500 rose on the day before Thanksgiving every year from 1965 to 1986? A 22-year streak!
Betcha lots of investors were thankful for that ?
— Callie Cox (@callieabost) November 25, 2020