Below are highlights from the NDW Morning Update Video for the morning of 10/06
Below are highlights from the NDW Morning Update Video for the morning of 10/06. Access the video on the NDW Morning Update Video page.
- It was a mostly productive day for many of the names we typically look at within the video. Leading the way to the upside were emerging markets (EEM), the Nasdaq Composite, and the Russell 1000. To the downside, the fixed income space and commodities were the large losers, with crude down nearly 2% for the day.
- In terms of notable chart action, SPXEWI reversed back up into X’s on its chart. While we do still trade on a PnF sell signal, the silver lining is the fact that we sit in a long-term positive trend. We will look for the average stock to continue to improve as participation remains a key battleground moving into Q4.
- The US Dollar (DX/Y) has drifted higher alongside rates, although both are now heavily overbought and some normalization could make sense. As rates drift higher, outstanding fixed income continues to decline, particularly those areas further out on the curve. TLT posted its fourth consecutive sell signal on its chart and the space remains a relative laggard within the fixed income space.
- VUG. vs. VTV, a key growth/value RS relationship, moved back into X’s favoring growth with yesterdays action. Growth has held long-term control on this RS relationship since 2023 and sits at or near all time RS highs.
- Developed EFA vs. emerging EEM on a 3.25% chart flipped back into O’s favoring emerging markets in the near term. The emerging space remains somewhat convincing while developed areas have struggled slightly, particularly on the trend following front.
- STZ reports after close on 10/6. It holds strong as a weak attribute name and should largely be avoided. DASH returns to a buy signal but maintains a negative trend. The technicals might support a flier position with further upside action around $208. Consider setting an alert.
