Daily Equity & Market Analysis
Published: Oct 02, 2026
This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

Daily Summary

3Q26 Newsletter Idea

Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospect.

Daily Option Ideas

Call: Visa Inc (V); Put: Modine Manufacturing (MOD); Income: Shopify Inc (SHOP).

Morning Pulse

NDW Morning Pulse - October 2, 2026

  • Markets pushed higher on Thursday, led by the average stock, with the S&P 500 Equal Weight Index (SPXEWI) gaining almost 0.5%. That said, the equal weight index is still on track for its seventh straight week of declines.
  • The decline in the average stock over the last several weeks has left several of our indicators on the cusp of washed-out territory. The bullish percent for the S&P 500 fell another 1.6% yesterday, leaving it just one box away from the 30% level, an area typically positive for markets, especially following reversals back into Xs.
  • Growth and momentum have been the best performing factors in 2026, but the two factors slowed down in the third quarter. Growth stock fund RPG fell more than 8.5% in the third quarter, as mentioned in yesterday's feature on factor performance.
  • Technology continues to sit at the top of DALI’s sector rankings and yesterday saw the group further its ascent. The average technology stock, as represented by the Invesco S&P Equal Weight Technology ETF (RSPT), set new all-time highs while completing another buy signal at $67.
  • Conversely, consumer discretionary stocks have been sliding, with the group remaining firmly near the bottom of DALI’s rankings. Yesterday, sector representative XLY broke a double bottom at $108 to complete a bearish triangle. Meanwhile, the VanEck Retail ETF (RTH) also completed a sell signal as consumer woes continue to serve as a headwind.

NDW Morning Pulse

by Trevor Plesko

Below are highlights from the NDW Morning Update Video for the morning of 10/02. Access the video on the NDW Morning Update Video page. 

  • Markets pushed higher on Thursday, led by the average stock, with the S&P 500 Equal Weight Index (SPXEWI) gaining almost 0.5%. That said, the equal weight index is still on track for its seventh straight week of declines.
  • The decline in the average stock over the last several weeks has left several of our indicators on the cusp of washed-out territory. The bullish percent for the S&P 500 fell another 1.6% yesterday, leaving it just one box away from the 30% level, an area typically positive for markets, especially following reversals back into Xs.
  • Growth and momentum have been the best performing factors in 2026, but the two factors slowed down in the third quarter. Growth stock fund RPG fell more than 8.5% in the third quarter, as mentioned in yesterday's feature on factor performance.
  • Technology continues to sit at the top of DALI’s sector rankings and yesterday saw the group further its ascent. The average technology stock, as represented by the Invesco S&P Equal Weight Technology ETF (RSPT), set new all-time highs while completing another buy signal at $67.
  • Conversely, consumer discretionary stocks have been sliding, with the group remaining firmly near the bottom of DALI’s rankings. Yesterday, sector representative XLY broke a double bottom at $108 to complete a bearish triangle. Meanwhile, the VanEck Retail ETF (RTH) also completed a sell signal as consumer woes continue to serve as a headwind.

3Q26 Newsletter Idea

by James West

Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospects, so in recognition of the change of calendar, we wanted to give you a sample newsletter to aid you with this communication. You want to let your clients know that you are holding the reins of their portfolios and that you are holding on tight. This letter has not been FINRA approved; however, you are welcome to use the text as you like. Feel free to "slice and dice" the text to best incorporate it within your business.

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Sample Client Newsletter: Q3 2026

PRINT ON FIRM APPROVED LETTERHEAD

INSERT DATE

September and Q3 2026 are now officially behind us. The Stock Trader’s Almanac says, “September is when leaves and stocks tend to fall; on Wall Street, it’s the worst month of all,” reflecting the negative reputation that September has developed with investors over the years. This year, September was unkind to most stocks as the S&P 500 Equal Weight Index finished the month down more than 5.5%. However, strong showings from some of the biggest stocks—especially semiconductors—cushioned the cap-weighted S&P, which finished the month down just 0.78%. Meanwhile, the Nasdaq-100, which is heavily weighted toward large tech stocks, finished September up more than 3%.

For the quarter, the S&P posted a gain of just over 2%, while the equal-weight index was down 2.3%. Although it fell during Q3, technology once again leads the domestic equity sector rankings in our Dynamic Asset Level Investing (DALI) tool followed by healthcare and communication services. DALI provides us with a heatmap of where relative strength (and weakness) lies across and within the major asset classes.

International equities have outperformed US stocks for most of 2026, but that trend shifted in Q3 as the MSCI Emerging Markets Index fell around 1% and the MSCI EAFE Index, which comprises developed international markets, eked out a gain of 0.30%. A strengthening US dollar was a headwind for non-US assets as the US Dollar Index reached its highest level of 2026 late in the quarter. Despite underperforming in Q3, international equities remain at the top of the DALI asset class rankings with domestic equities a close second.

US Treasury yields surged in September with the 10-year US Treasury Yield Index breaching the 5% level for the first time since 2007. The rise in yields has driven considerable weakness in core US fixed income. Meanwhile, non-US fixed income, which had been an area of strength for much of the last year, was hampered by strength in the US dollar. Q3 also saw the Federal Reserve raise the federal funds rate for the first time since 2023 and the market is currently predicting a better than 85% chance of another increase by the end of the year.

Renewed tension in the Middle East helped drive a 30% surge in oil prices in Q3. Meanwhile crack spreads, which gauge the profit generated by refining oil into gasoline, diesel, and distillates, sit near all-time highs. Both factors have helped drive worries about inflation and have been cited as contributing to the rise in interest rates. Gold and silver advanced in August but gave back most of the gains in September as surging yields were a major headwind for precious metals.

 With the beginning of October, we enter what has historically been one of the more volatile months for the market. Some of the more notorious market meltdowns have occurred or accelerated in October including 1978 (-9%), 1987 (-22%), and 2008 (-17%). However, the S&P 500 has been positive in October more often that it has been negative and the month is sometimes referred to as the "bear killer," as its end ushers in the beginning of the seasonally strong six months of the year.

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Please be aware that the content of this newsletter is based on the opinion of Dorsey, Wright research and may differ from the research provided by your financial advisor. This market theme letter was written by Dorsey, Wright & Associates and is provided courtesy of your advisor.

The performance numbers in this article do not reflect dividends or transaction costs.  Indexes are not available for direct investment. Past performance is not indicative of future results and there is no assurance that any forecasts mentioned in this report will be attained.

Stocks offer growth potential but are subject to market fluctuations. Dividends are not guaranteed; companies can reduce or eliminate their dividend at any time. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”).  However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein.  DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded).  Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.  This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.

Potential for profits is accompanied by possibility of loss.

The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.

Featured Charts:

Portfolio View - Major Market ETFs

 

 

Market Distribution Table The Distribution Report below places Major Market ETFs and Indices into a bell curve style table based upon their current location on their 10-week trading band.

The middle of the bell curve represents areas of the market that are "normally" distributed, with the far right being 100% overbought on a weekly distribution and the far left being 100% oversold on a weekly distribution.

The weekly distribution ranges are calculated at the end of each week, while the placement within that range will fluctuate during the week. In addition to information regarding the statistical distribution of these market indexes, a symbol that is in UPPER CASE indicates that the RS chart is on a Buy Signal. If the symbol is dark Green then the stock is on a Point & Figure buy signal, and if the symbol is bright Red then it is on a Point & Figure sell signal.

 

Average Level

-45.34

< - -100 -100 - -80 -80 - -60 -60 - -40 -40 - -20 -20 - 0 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 100 - >
                       
Sell signalhyg
                     
Sell signalief
                     
Sell signalfxe
                     
Sell signalagg
 
Buy signaliwm
                 
Sell signallqd
 
Buy signaldia
                 
Buy signalicf
Sell signaldvy
Buy signalVOOV
       
Buy signalxlg
Buy signalUSO
     
Sell signaltlt
Buy signalijr
Buy signalefa
     
Buy signalSPY
Buy signalVOOG
Buy signalQQQ
     
Sell signalshy
Buy signalrsp
Buy signalIJH
 
Buy signalgld
 
Sell signalEEM
Buy signalONEQ
Buy signalgcc
Buy signalGSG
Buy signaldx/y
 
< - -100 -100 - -80 -80 - -60 -60 - -40 -40 - -20 -20 - 0 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 100 - >

 

AGG iShares US Core Bond ETF
USO United States Oil Fund
DIA SPDR Dow Jones Industrial Average ETF
DVY iShares Dow Jones Select Dividend Index ETF
DX/Y NYCE U.S.Dollar Index Spot
EFA iShares MSCI EAFE ETF
FXE Invesco CurrencyShares Euro Trust
GLD SPDR Gold Trust
GSG iShares S&P GSCI Commodity-Indexed Trust
HYG iShares iBoxx $ High Yield Corporate Bond ETF
ICF iShares Cohen & Steers Realty ETF
IEF iShares Barclays 7-10 Yr. Tres. Bond ETF
LQD iShares iBoxx $ Investment Grade Corp. Bond ETF
IJH iShares S&P 400 MidCap Index Fund
ONEQ Fidelity Nasdaq Composite Index Track
QQQ Invesco QQQ Trust
RSP Invesco S&P 500 Equal Weight ETF
IWM iShares Russell 2000 Index ETF
SHY iShares Barclays 1-3 Year Tres. Bond ETF
IJR iShares S&P 600 SmallCap Index Fund
SPY SPDR S&P 500 Index ETF Trust
TLT iShares Barclays 20+ Year Treasury Bond ETF
GCC WisdomTree Continuous Commodity Index Fund
VOOG Vanguard S&P 500 Growth ETF
VOOV Vanguard S&P 500 Value ETF
EEM iShares MSCI Emerging Markets ETF
XLG Invesco S&P 500 Top 50 ETF
   

 

Long Ideas

Symbol Company Sector Current Price Action Price Target Stop Notes
AME Ametek Inc Electronics $249.09 mid 230s - mid 250s 342 204 4 for 5'er, LT pos mkt RS, bullish catapult, buy on pullback, R-R>2.0
WELL Welltower Inc. Real Estate $226.94 low 230s to low 250s 366 194 5 for 5'er since Feb. '24, top quintile of Real Est. matrix, Pos. trend since Feb. '24, buy on pullback.
CENTA Central Garden & Pet Company Household Goods $33.79 mid-to-hi 30s 48 31 4 for 5'er, favored HOUS sector, LT pos peer RS, spread quad top, buy on pullback
CLH Clean Harbors Inc Waste Management $312.51 310s - 320s 356 288 5 for 5'er, #3 of 22 in WAST sector matrix, LT pos peer & mkt RS
ASC Ardmore Shipping Corporation Transports/Non Air $19.25 17 - 19 24 15.50 5 for 5'er, top 20% of favored TRAN sector matrix, triple top, good R-R, 7.5% yield
MTCH Match Group, Inc. Leisure $40.13 low-to-mid 40s 55 36 4 for 5'er, top 20% of LEIS sector matrix, one box from RS buy, triple top, 1.8% yield
FTNT Fortinet Inc. Software $178.72 hi 160s - hi 170s 226 142 5 for 5'er, top third of favored SOFT sector matrix, LT pos mkt RS, spread quad top
CSTL Castle Biosciences, Inc. Biomedics/Genetics $35.19 32 - 35 63.50 28 4 for 5'er, top 10% of favored BIOM sector matrix, multiple buy signals, pos trend flip, R-R~4.0
GH Guardant Health, Inc. Biomedics/Genetics $174.86 low 170s to mid 180s 236 140 5 for 5'er since May '26, top quintile of Biomedics matrix, pos. trend, ATH on 9/17.
ANET Arista Networks Inc Telephone $204.49 190s - mid 210s 262 178 5 for 5'er, top quintile of Telephone matrix, pos. trend, matched ATH on 9/25.
ABBV AbbVie Inc. Drugs $259.93 250s - 260s 302 216 5 for 5'er, top third of favored DRUG sector matrix, LT pos peer & mkt RS, triple top, 2.6% yield
ACT Enact Holdings Inc Finance $44.16 low-to-mid 40s 69 37 5 for 5'er, top 25% of FINA sector matrix, LT pos trend & mkt RS, triple top, heavily oversold
LPG Dorian LPG Limited Oil Service $56.59 53 - 59 69 47 5 for 5'er since July, top quintile of Oil Svcs. matrix, pos. trend, consolidating below high at $59.

Short Ideas

Symbol Company Sector Current Price Action Price Target Stop Notes
ADBE Adobe Systems Incorporated Software $241.28 (230s - 240s) 192 268 2 for 5'er, bottom 25% of SOFT sector matrix, LT neg mkt & peer RS, spread triple bottom

Removed Ideas

Symbol Company Sector Current Price Action Price Target Stop Notes
ASX ASE Industrial Holding Co., Ltd. Sponsored ADR Semiconductors $44.73 hi 30s 52 31 Rallied into overbought territory, actionable within the lower $40 range, raise stop to $35.
AVT Avnet Inc Electronics $102.29 hi 90s - low 100s 125 85 Rallied into overbought territory, actionable within the lower $100 range, raise stop to $93.

Follow-Up Comments

Comment
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NDW Spotlight Stock

 

LPG Dorian LPG Limited R ($57.20) - Oil Service - LPG has maintained a 5 TA rating since seeing the market and peer relative strength charts move back into Xs in late July this year. Along with long-term positive market and peer relative strength, LPG currently ranks within the top quintile of the Oil Services sector matrix. On the trend chart, LPG has maintained a positive trend since February this year and a buy signal since mid-July. September’s trading led to a fourth buy signal as shares rallied to an all-time chart high at $59. Since then, LPG has consolidated within the mid $50s, reversing back into Xs to close out the month. Okay to consider in the $53 to $59 range. The bullish price objective of $69 will serve as the price target, while the initial stop will be set for $47.

 
                        26                                  
59.00                                               X         59.00
58.00                                               X O       58.00
57.00                                               X O       57.00
56.00                                               X O X     56.00
55.00                                               X O X     55.00
54.00                                               X O X     54.00
53.00                                               X O       53.00
52.00                                           X   X         52.00
51.00                                           X O 9         51.00
50.00                                           X O X       Mid 50.00
49.00                                           X O X         49.00
48.00                           X               X O           48.00
47.00                           X O         X   X             47.00
46.00                           X O     X   X O X             46.00
45.00                           X O X   X O X O X             45.00
44.00                           X O X O X O X 8 X             44.00
43.00                           X O 6 O X O   O               43.00
42.00                           X O X O X                     42.00
41.00 •                         X O X O X                     41.00
40.00   •                       5 O   O X                     40.00
39.00     •                     X     O X                     39.00
38.00       •               3   X     O 7                     38.00
37.00         •             X O X     O X               •   Bot 37.00
36.00           •           X O X     O X             •       36.00
35.00             •         X O 4     O             •         35.00
34.00               •       X O X                 •           34.00
33.00                 •     X O X               •             33.00
32.00               X   •   X O X             •               32.00
31.00               X O   • 2 O X           •                 31.00
30.00           X   X O     X O X         •                   30.00
29.00           X O X A X   X O         •                     29.00
28.00           X O X O X O X         •                       28.00
27.00           7 8 X O X O 1       •                         27.00
26.00           X O   O   B X     •                           26.00
25.00           X         O X   •                             25.00
24.00       X   6         C   •                               24.00
23.00       5 O X           •                                 23.00
22.00 O     X O X         •                                   22.00
21.00 O     X O         •                                     21.00
20.00 4 X   X         •                                       20.00
19.50 O X O X       •                                         19.50
19.00 O X O X     •                                           19.00
18.50 O X O X   •                                             18.50
18.00 O X O X •                                               18.00
17.50 O X O •                                                 17.50
17.00 O • •                                                   17.00
                        26                                  

 

 

DAL Delta Air Lines Inc. ($83.89) - Aerospace Airline - DAL broke a double top at $86 for a third buy signal since falling to the mid $70s in September. The breakout also penetrates the bearish resistance line, which will shift the trend back to positive and increase the stock up to a 4 for 5'er in TA rating. Okay to consider here on the breakout. Note resistance at prior highs in the mid $90s. Initial support can be found in the lower $80s, while additional resides at the September '26 lows in the mid $70s.
LNG Cheniere Energy, Inc. ($267.28) - Oil Service - LNG fell to a sell signal Friday when it broke a double bottom at $264 and continued lower to $264, where it now sits against its bullish support line. The outlook for the stock remains positive, however, as LNG is a 4 for 5'er that ranks in the top half of the oil service sector matrix. A move to $256 would drop the stock to a 3 for 5'er.
NVDA NVIDIA Corporation ($233.97) - Semiconductors - Shares of NVDA pushed higher, breaking a double top at $236 to move move back to a buy signal while setting new all-time highs. That said, the stock remains in hold territory as a 3 for 5'er, with resistance ahead at the $236 level. Meanwhile, support lies at $$212 and $208.

The option suggestions featured here are pulled from the NDW Options Ideas tool. These are just a sample of the ideas that can be found there. The Options Idea tool contains numerous additional income and speculative plays. It also offers relative strength-based screens targeting the highest (and lowest) relative strength stocks and ETFs that have recently moved counter to their longer-term trend. To access or subscribe to the Options Ideas tool, click here.


Call

Visa Inc (V) Dec 18 $360 Call

Additional Data:  
Bid/Ask Spread 9.68%
Delta 56.23
Gamma 1.1
Implied Volatility 22.53%
Expiry Date 77
Earnings Date 10/27/2026

Put

Modine Manufacturing (MOD) Jan 15 $180 Put

Additional Data:  
Bid/Ask Spread 21.05%
Delta -44.02
Gamma 0.74
Implied Volatility 74.78%
Expiry Date 105
Earnings Date 10/27/2026

Income

Shopify Inc (SHOP) Oct 30 $170 Covered Call

Additional Data:  
Ann. Static Return 27.61%
Bid/Ask Spread 16.44%
Delta 74.82
Gamma -1.41
Implied Volatility 52.83%
Expiry Date 28
Earnings Date 11/3/2026

 

Most Requested Symbols