- On the 36th anniversary of Black Monday, the S&P 500 fell by 0.85%, as just 15% of stocks managed to close in the green
- The big story was the 10-year Treasury Yield hitting 5% for the first time since 2007; the VIX rose to its highest level in months (21)
- All four major U.S. equity indices have strongly bearish postures and are trading below their falling 30-day moving averages
- The Dow Jones Industrial Average fell by 0.75%; the NASDAQ Composite fell by 0.96%
- The Russell 2000 was the day’s biggest loser (-1.51%); it now has an oversold cluster signal
- Over half of dividend stocks (with at least 5 years of increases) are now trading in their historically attractive yield range
- The 10 Year Treasury Yield rose 4.99%; its highest level in 16 years
- Bonds fell across the board, with long term U.S. Treasuries selling off by over 2% (all bond categories have strongly bearish postures)
- The U.S. Dollar was down 0.30%; it has a weakly bearish posture but it’s still well above its rising 30 day moving average
- Gold (+1.23%) and Oil (+2.3%) both have strongly bullish postures and are above their rising 30 day moving averages
- Foreign developed stocks (-.089%) and Emerging Markets (-0.59%) both have strongly bearish postures
- Preferred stocks fell 1.05% and ended at its lowest level in a long time (in addition to finishing with an oversold cluster signal)
- Bitcoin is now above $28,500; it’s still above its rising 30 day moving average and has a strongly bullish intermediate posture
- Energy stayed at the top of the Sector Selector for the 11th straight week; Consumer Staples remained in last place
- All sectors closed lower today with Discretionary lagging (-2.56%) and Communications leading (-0.10%)
- The only sector with a strongly bullish posture is Energy
- Discretionary and Materials ended the day with oversold clusters
- Our trade application example featured a cash-secured sold put on T. Rowe Price (TROW) due to it having its highest dividend yield in decades (possibly ever) at a time when it remains debt-free (which protects the dividend); it also has oversold Daily/Weekly/Monthly clusters
Please LIKE tonight’s Market Outlook video on Twitter and Facebook below:
10/19/23 - Watch the full #MarketOutlook video from @MarketScholars here:https://t.co/eKWXHTsIJV$SPY $SPX $QQQ $IWM $RUT $DIA $DJIA $COMP $TLT $TNX $UUP $EEM $EFA $USO $GLD $VIX $BTC $NVDA $META $MSFT $AAPL $TSLA $GOOGL $AMZN $NFLX $KO $PEP $CCI $SEDG $ENPH $T $SBUX $DFS $TROW pic.twitter.com/nxadJHlikp
— Brandon Van Zee (@BrandonVanZee) October 20, 2023
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