Even though the S&P 500 index appears to be relentlessly pursuing new all-time highs, the traditional seasonal weakness in October leads me to be very focused on risk management right about now.

After my latest conversation with fellow StockCharts contributor Joe Rabil, and hearing his thoughts on risk management, I wanted to share some reflections on what risk management could mean for investors as we get into the meat of the 4th quarter.

Watch the S&P 500’s “Line in the Sand”

My general approach to technical analysis is determine the current trend, and then identify what level or signal would convince me that the trend had reversed.  I call this the “line in the sand” technique, because you literally draw a line on the chart, and then don’t give the chart a second thought until and unless that line is violated.

For the S&P 500, that means I’m laser focused on the 5650 level.  The July peak was right around this level, along with the subsequent peaks in mid and late August.  The September breakout above 5650 was a key bullish move for the benchmark, and I would expect a break back below this price point could signal the end of the current bull run.

So until and unless we see the S&P 500 break below 5650, then the current bullish trend appears to be alive and well!

Breadth Indicators Could Provide an Early Warning

Now even if the S&P is still holding key support, plenty of individual names could break down before the benchmarks.  In fact, this happens quite often at major market tops like 2007!  Market breadth indicators are perhaps the best way to analyze and track this potential divergence, where individual stocks start to break down.

Here we can see the S&P 500 for the last 12 months along with the new 52-week highs minus new 52-week lows, the new highs and lows for the entire NYSE, and the new highs and lows for the S&P 500 members.

Note how all three of these data series topped out in mid-September, and have been steadily declining since then?  A healthy bull market phase usually sees an expansion in new 52-week highs, as the leading names are powering to the upside.  But in the last few weeks, we’re seeing a significant breadth divergence that tells me to be skeptical of the current uptrend phase.

Keep Your Position Size Manageable

In my latest podcast episode with fellow StockCharts contributor Joe Rabil, he shared some words of wisdom on how to think about risk management.  I particularly appreciated his thoughts on position sizing, sharing that he usually risks about 1% of his portfolio on each new idea.

Options expert Price Headley once quipped, “If you’re having trouble sleeping at night, your position size is too big!”  By being thoughtful and intentional about how much capital we risk on each new idea, we can minimize the pain in case some of the bearish signs we’re observing actually play out in the days and weeks ahead!

Mindless investors ignore risk management, focusing instead on how much they stand to gain if they’re proven right.  Mindful investors recognize that they will often be wrong, and by managing risk, they can survive to invest another day.

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

Apologies for revisiting Carvana (CVNA), but it has such a beautiful chart pattern playing out the way it should. After bottoming out in a cup with handle pattern on the weekly chart and breaking out of the handle, Carvana stock has been in an upward-moving trend. The stock has now hit another milestone level, making it necessary to feature it again.

Carvana stock hits a new 52-week high and is back in the top position in the StockCharts Technical Rank (SCTR) Report, Top 10, Large Cap category. Several StockCharts Predefined Scans were also triggered for Carvana (see Symbol Summary page for CVNA). The stock price has been trending higher, with higher highs and higher lows. For a while, CVNA has frequently appeared in the top five in the SCTR Report, and if you follow the ChartWatchers blog, you’d have seen the stock pop up frequently. If you opened a long position in CVNA, you’d be feeling pretty good now.

But don’t get too complacent. It’s time to manage your position. Let’s analyze the recent stock price charts, starting with the weekly chart.

Carvana Stock Weekly Analysis

From a weekly perspective, Carvana’s stock price is maintaining its uptrend; it’s also approaching its 50% Fibonacci retracement level, and its relative strength index (RSI) has just crossed the 70 level. The uptrend is still intact and could go much higher if the momentum is behind it.

CHART 1. CARVANA STOCK CONTINUES TRENDING HIGHER. After breaking out of a cup and handle pattern, CVNA is trending higher and is now at its 50% Fibonacci retracement level.Chart source: StockCharts.com. For educational purposes.

I would watch the 50% retracement level carefully. It could act as a resistance level, causing the stock price to stall. As long as it stays within the 38.2 and 50% retracement level, i.e., between $145 and $189.42, the uptrend should be intact. Of course, if CVNA breaks above the 50% retracement level, continue to ride the trend.

Carvana Stock Daily Analysis

When a stock has a well-defined trend, momentum is an important ingredient in fueling the trend higher. The Chaikin Money Flow indicator (top panel) and moving average convergence/divergence (MACD) displayed in the bottom panel show that momentum supports the upmove in Carvana (see daily chart below).

CHART 2. DAILY CHART OF CARVANA STOCK. The stock broke out of its upward channel with rising CMF and MACD. It closed above $189.42. Will it push through and surge higher?Chart source: StockCharts.com. For educational purposes.

Carvana stock has broken out of its upward price channel. Instead of using the 21-day exponential moving average (EMA), I have shortened the period to a 5-day one to use as a trailing stop. I’ve also changed the longer-term simple moving average to a 25-period one.

The bottom line. Add the daily and weekly charts of CVNA to your StockCharts ChartLists and continue to monitor them. Set a StockCharts Alert to notify you when CVNA crosses below its 5-day EMA using the Advanced Alerts tool. If you’ve decided to unload some positions when price crosses below the 5-day EMA, follow your system. Making objective trading decisions can keep emotions at bay, which is a good habit to cultivate.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

In this video from StockCharts TV, Julius presents a few conflicting rotations and signals continue to warrant caution while the S&P 500 keeps hovering just above support. With the negative divergences between price and MACD/RSI remaining intact, SPY should not break 565. Julius looks at rotations in asset classes, growth/value factors, and US sectors to assess the current state of the markets.

This video was originally published on October 8, 2024. Click anywhere on the icon above to view on our dedicated page for Julius.

Past episodes of Julius’ shows can be found here.

#StayAlert, -Julius

Monday saw something of a bloodbath on Wall Street, with the Dow ($INDU) plunging over 500 points at its worst and the S&P 500 ($SPX) and Nasdaq ($COMPQ) falling over 1%.

Higher oil prices, triggered by tensions in the Middle East, played a big hand in Monday’s market mayhem. In the blogosphere, other topics like a historic crude oil short squeeze and fears of a looming Israeli attack on Iranian oil and gas infrastructure made the headlines.

Is it time to go long? With oil spiking, could there be an opportunity to ride the wave with gasoline, given the usual lag? How high could oil climb? And with the current geopolitical tension, could we see a longer uptrend in oil or gas? What levels should you keep an eye on?

Let’s pause and break down what’s happening with oil and gas prices in technical terms.

What’s Going On with Oil Prices?

Below is a weekly chart presenting a five-year lookback on oil, using the US Oil Fund (US) as a proxy.

CHART 1. WEEKLY FIVE-YEAR CHART OF USO. Zooming out a bit, the level of fear in the market might not seem dramatic when you look at price action. USO is trading sideways with clear support and resistance levels.Chart source: StockCharts.com. For educational purposes.

Following the dramatic 2020 drop and 2022 peak, crude oil has traded sideways. The range may have been rather wide, but, directionally, it’s been sideways nevertheless.

• The magenta rectangle highlights a stabilizing range of support and resistance.
• Price has moved above and below the 50-week simple moving average (SMA) in a whipsaw fashion.
• In terms of momentum, the Money Flow Index (MFI) is showing a dip in buying pressure, just like the Chaikin Money Flow (CMF), even with the recent uptick in buying (check out the magenta circle).

The broader structure here shows that the current price surge is still relatively minuscule compared to the structure itself. But that doesn’t mean geopolitical events can’t drive prices above the current resistance level of around $83 or lower to its support at $64.

A close below either level would signal a broader fundamental driver and potentially the beginning of a longer-term trend.

Let’s switch to a daily chart for a more near-term view.

CHART 2. DAILY CHART OF USO. If the price continues higher, there will be a lot more resistance up ahead. Note the multiple support levels as well. These could trigger a price bounce.Chart source: StockCharts.com. For educational purposes.

This might not be unusual for wide long-term trading ranges, but you can spot plenty of ceilings (and floors) ahead.

• The Relative Strength Index (RSI) is rising and not quite yet at overbought territory, meaning there’s still room to run. But how much higher can it go?
• Look at the volume spike toward the bottom of the chart. It’s quite significant, but what’s perhaps more critical is the follow-up in volume as well as price, and so far, it isn’t there (yet).
• The CMF reading doesn’t show anything extraordinary in measuring buying pressure.
• If you’re curious as to the effect of crude oil prices on the broader energy sector, the energy sector’s Bullish Percent Index (BPI), a breadth indicator, tells us that over 60% of energy stocks are displaying P&F (Point & Figure) buy signals, which is, as you might guess, bullish.

Watch this: Focus on the multiple levels of resistance. Will volume and momentum drive USO beyond these levels? That’s a matter of geopolitical developments, none of which anyone can predict. However, sentiment can drive prices higher even without fundamental validation. And if this happens, it can last beyond the coming election, particularly if the question of an attack on Iranian energy infrastructure remains at the forefront of investors’ minds.

Also, mind the multiple levels of support (see black dotted lines), as several are likely to trigger a bounce.

What’s Going On with Gas Prices?

So, how might the rise in oil prices affect gas prices? Here’s a daily chart of the US Gasoline Fund (UGA) for comparison (UGA will be the proxy for gas).

The answer is, nothing yet.

CHART 3. DAILY PRICE OF UGA. Note the correlation in the indicator window above the chart. It’s showing a 99% correlation between UGA and USO.Chart source: StockCharts.com. For educational purposes.

When it comes to gasoline prices, there are two things to consider:

• Lag time. There’s a relative lag time between oil prices and gasoline prices. This can take two to four weeks, depending on supply chains, refining processes, and distribution networks.
• Market sentiment. Futures traders, especially, can push prices up in anticipation of a significant rise in crude oil, disruption to supply chains, refining, and distribution.

If this is what’s happening in UGA, there’s hardly any volume behind the move (see magenta circle). The lack of buying pressure, as displayed by the OnBalance Volume (OBV) indicator, agrees with this.

Another thing to watch: Investors wonder if the recent spike in crude oil will lead to a rise in gas prices. In other words, did crude oil and gasoline temporarily de-correlate? Looking at the StockCharts Correlation Coefficient indicator above the chart, you’ll notice that both commodities are still at a 99% correlation.

So, if you were hoping to take advantage of the lag between gasoline and crude oil prices, then price-wise, it isn’t there as of this moment (according to the indicator).

At the Close

To wrap things up, oil is spiking in the near term. In the bigger picture, however, it’s still trading sideways, and resistance levels are about to be tested. While gas prices usually lag, its price remains correlated to oil’s price surge, and, to date, there’s no significant volume driving it up (unlike crude oil). The big question is whether geopolitical risks will push prices higher. Sentiment can drive up prices even if that means getting ahead of fundamentals. Thus, you should keep an eye on the current technical levels and indicators. You’re likely to see a sharp response in those, as you would in any news item that might cause investors to jump.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation or without consulting a financial professional.

Will we see a major market top during the month of October? Dave breaks down three market breadth indicators and compares their current configuration to what we observed at the 2007 market top. He then goes through the charts and reviews market topping conditions from a breadth perspective using the McClellan Oscillator, Stocks Above the 50-day Moving Average, and New 52-week Highs and Lows.

This video originally premiered on October 7, 2024. Watch on our dedicated David Keller page on StockCharts TV!

Previously recorded videos from Dave are available at this link.

Good morning and welcome to this week’s Flight Path. Equities saw the trend remain and as the week came to a close we saw more strong blue “Go” bars as price rallied close to prior highs. GoNoGo Trend shows that there has been a change in trend from “Go” to “NoGo” for treasury bond prices. After an amber “Go Fish” bar we see strong purple “NoGo” bars. The U.S. commodity index remains in a strong “Go” trend this week while the dollar saw a “Go” take over albeit painting weaker aqua bars.

$SPY Fights to Stay Near Highs in “Go” Trend

The GoNoGo chart below shows that after several bars of weakness we see the bright blue bars of a stronger trend return. This may provide a new level of support as we move forward. We also see a Go Trend Continuation Icon (green circle) as GoNoGo Oscillator found support at the zero line. We see that after just one bar we are back testing that level again. It will be important for the oscillator to continue to find support at that level to provide a springboard for price to move higher from here.

The longer time frame chart shows us that GoNoGo Trend painted another strong blue “Go” bar this past week and on a closing basis we made a new high. GoNoGo Oscillator shows that momentum is positive but not yet overbought. We will watch to see if momentum remains at or above the zero line as price challenges for more gains.

New “Go” Trend For Treasury Yields

Treasury bond yields have climbed to new highs and we saw GoNoGo trend roll through the colors as a couple of amber “Go Fish” bars were followed by a first new “Go” bar for several months. GoNoGo Oscillator burst through the zero level last week and out of a GoNoGo Squeeze. Since then, it has retested and found support at zero and that tipped us off to the change in trend in the price panel above. We now see momentum at a value of 5 and so there is enthusiasm around this price move.

The Dollar Saw a “Go” Trend Emerge

Price climbed quickly this week and followed an amber “Go Fish” bar with a string of aqua “Go” bars as price climbed to new highs. GoNoGo Oscillator having struggled with the zero level for several bars assertively broke through into positive territory and we saw an increase in volume as the oscillator rose to a value of 5. Now we can say that momentum is on the side of the new “Go” trend as it tries to consolidate at these new levels.

During today’s market analysis Carl laid out his reasons why we believe we are at a market top. He discusses the current market price action combined with exclusive DecisionPoint indicators to substantiate his position. Don’t miss his analysis.

Carl also goes though the Magnificent Seven by analyzing the daily charts for a near-term perspective and the weekly charts to give us an intermediate-term perspective. Which charts are toppy?

Erin covers Sector Rotation with a special emphasis on the Energy sector which is taking off on the positive Crude Oil trade. Does this rally have more legs? Erin looks at the “under the hood” chart to give you her thoughts. This led into a look at the industry groups within Energy. She likes one group better than the others.

Finally the pair finish up the program with viewer symbol requests which were heavy on the Energy sector and Semiconductors.

01:30 DP Signal Tables

03:37 Market Overview and the Case for a Market Top

11:37 Magnificent Seven

19:02 Discussion of UPS and XLB

26:25 Sector Rotation (More case for market top)

30:37 Energy Discussion and Industry Groups

40:18 Symbol Requests

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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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SCTR Ranking

Bear Market Rules

On the back of one of the major FII selloffs seen in recent times, the markets succumbed to strong corrective pressure through the week and ended the week on a very weak note. The Nifty 50 remained under selling pressure for the entire week; at no point in time, did it show any intention to stage a technical pullback. While the weakness persisted in all five trading sessions, the trading range also got wider. The Nifty oscillated in an 1167-point range over the past five days. There was a resultant rise in the volatility as well; the India VIX surged by 18.10% to 14.13 on a week-on-week basis. The benchmark Nifty 50 closed with a deep weekly cut of 1164.35 points (-4.45%).

We have evident reasons like the money flowing out of the Indian markets to the Chinese markets, geopolitical tensions in the Middle East, and SEBI announcing changes in the derivatives trading landscape to write about when we talk and assign reasons for market declines. However, we also need to take a deeper look at the technical perspective. The Nifty was highly deviated from its mean; at one point in time, the index was trading almost 10% above its 50-week MA. So, even the slightest reversion to the could have seen violent retracements from higher levels. Despite the kind of fall we have seen over the past few days, the Nifty has not even tested the nearest 20-week MA which currently stands at 24441. This speaks a lot about the extent to which the markets had run up much ahead of their curve.

The derivatives data suggest that the markets may attempt to find support at 25,000 levels. Besides being a psychologically important level, the 25,000 strikes not only hold the highest PUT OI as of now but have a very negligible existence of Call OI. So, even if we continue with an overall downtrend, some minor technical rebound from the current levels cannot be ruled out. By and large, a stable start is expected for the week, and the levels of 25300 and 25450 shall act as resistance. The supports are expected to come in at 24910 and 24600.

The weekly RSI is 59.70; it has crossed under 70 from an overbought zone which is bearish. It stays neutral and does not show any divergence against the price. The weekly MACD looks like being on the verge of a negative crossover as evidenced by a narrowing Histogram. A large bearish candle that emerged hints at the kind of strong selling pressure that was witnessed throughout the week.

The pattern analysis shows that despite the kind of decline that we have seen, the primary trend stays intact. On the daily chart, we have tested the 50-DMA; on the weekly chart, we have not even tested the nearest 20-week MA. So long as we are above the 24000-24400 zone, there is little chance of the primary uptrend getting disrupted.

All in all, from a short-term technical lens, the behavior of Nifty vis-à-vis the levels of 25000 would be very crucial to watch. If the Nifty has to find some ground and put a base for itself in place, it will have to keep its head above 25000 levels. Any violation of this level on a closing basis would invite more weakness for the index. Then, the levels of 20-week MA may get tested over the coming days. While navigating this turbulent phase, it is recommended that we cut down on highly leveraged positions and stay invested in low-beta defensive pockets. While staying mindful when managing risks, a highly cautious approach is advised for the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) show Nifty IT, Pharma, Consumption, Services Sector, and FMCG indices are inside the leading quadrant. However, a couple of them are showing some paring of their relative momentum. However, broadly speaking, these groups may show some resilience and may relatively outperform the broader markets.

Nifty Midcap 100 Index has rolled inside the weakening quadrant. Besides this, the Nifty Auto is also inside the weakening quadrant and is seen rolling towards the lagging quadrant.

The Nifty PSE Index has rolled inside the lagging quadrant. Along with the Infrastructure Index which is also inside the lagging quadrant it is set to relatively underperform the broader markets. The Nifty Bank, Energy, Realty, Metal, PSU Bank, Financial Services, and Commodities Index are also inside the lagging quadrant. However, they all are seen improving their relative momentum against the broader Nifty 500 index.

The Nifty Media Index is the only one inside the improving quadrant; however, it is seen rapidly giving up on its relative momentum against the broader markets.

Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

In this StockCharts TV video, Mary Ellen highlights the continuation rally in AI-related stocks while also reviewing broader market conditions. The move higher in yields as well as volatility were discussed heading into next week’s FOMC notes and inflation data.

This video originally premiered October 4, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

After Friday’s stellar jobs report—254,000 jobs added in September vs. the Dow Jones forecast of 15,000—stocks and Treasury yields initially reacted with a big jump. The data confirms the strength of the labor market and the US economy.

Let’s not forget, though, that a devastating hurricane ripped through six states, leaving people homeless, isolated, and without power. The hurricane would have caused job losses, especially in the services sector. We’ll know more in the next jobs report. Fortunately, the US dockworkers’ strike was short-lived, so its impact may have been very light.

The Macro Picture

The stronger-than-expected September jobs report resulted in increased investor optimism. In addition to a large increase in new jobs, unemployment fell to 4.1%, and average hourly earnings are up by 0.4%.

The broader stock market indexes closed higher into the close, which is unusual price action for a Friday when too many uncertainties are lingering. The daily chart of the S&P 500 ($SPX) below shows that after hitting an all-time high on September 26, the index pulled back close to its 21-day exponential moving average (EMA). Thursday’s doji candlestick represents indecision, and Friday’s jobs report reversed the indecision to optimism.

CHART 1. S&P 500 REMAINS BULLISH. The index bounced off its 21-day EMA with expanding market breadth. The number of 52-week highs outnumbers the new 52-week lows.Chart source: StockCharts.com. For educational purposes.

Overall, the S&P 500’s trend is bullish, and market breadth is expanding, with new 52-week highs greater than new 52-week lows.

The Nasdaq Composite ($COMPQ) closed above its August high (see chart below). Market breadth, measured by different indicators than those in the chart of the S&P 500, is also expanding.

CHART 2. NASDAQ BOUNCES ABOVE AUGUST HIGH. The Nasdaq has been trading sideways since its August high. Will today’s breakout from that high have enough momentum for follow-through action? The market breadth indicators give mixed signals.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite Bullish Percent Index (BPI) is at 55.67, indicating slight bullishness. The Nasdaq Percent of Stocks above their 200-day moving average is at 44.54, which is relatively low, but it is trending higher. The Nasdaq Advance-Decline Line is trending lower, which is a little concerning. The Nasdaq hasn’t been as strong in its recovery as the S&P 500 and the Dow Jones Industrial Average ($INDU), which again eked out a record close.

Small-cap stocks rallied the most of the indexes featured in the StockCharts Market Overview panel on Your Dashboard. After falling below the trading range it’s been in for the last month, the S&P 600 Small Cap Index ($SML) is back within the range (area between dashed blue horizontal lines).

CHART 3. SMALL-CAP STOCKS TICK HIGHER. After Thursday’s price action, small-cap stocks picked up strength and made it back to close within their trading range. Advanced outnumber has declined, and the percentage of stocks trading above their 50-day moving average is also trending higher.Chart source: StockCharts.com. For educational purposes.

The market breadth indicators in the lower panel show that market breadth for $SML is also improving. The percentage of $SML stocks trading above their 50-day moving average is trending higher, and the number of advances and volume advance percent is higher.

The bond market also reacted strongly to the jobs report. Treasury yields rose after the news broke, with the 10-year US Treasury yield closing up 3.4% at 3.98%. This supports the notion that the Fed will likely slow down the pace of rate cuts. The CME FedWatch Tool reflects the probability of a 25 basis point interest rate cut in the Fed’s November 7 meeting at 98.9%.

Another important area to watch is volatility. The Cboe Volatility Index ($VIX) pulled back on Friday, closing at 19.21. But don’t be surprised to see it tick back up. Geopolitical turbulence is still front and center, and there’s an important election one month away. Investors should tread carefully, since any event could cause a volatility spike and change the picture.

Sector Performance

Crude oil prices rose this week, mostly due to Middle East tensions. The Energy sector was a laggard in the last several months, but it has now broken out of its downward-sloping trendline, ending the week as the top-performing sector.

The daily chart of XLE clearly shows a reversal in energy prices.

CHART 4. ENERGY SELECT SECTOR SPDR (XLE) BREAKS OUT. Rising geopolitical turbulence lifts oil prices higher. The S&P Energy Sector BPI also spiked, showing bullish dominance.Chart source: StockCharts.com. For educational purposes.

The S&P Energy Sector BPI spiked higher to 68.18 putting it into bullish territory. If tensions continue to escalate in the Middle East, oil prices could rise further.

To identify the stocks in the sector, pull up the StockCharts MarketCarpet, select 5D Change from the Color By dropdown menu, and click on Energy (see image below).

ENERGY SECTOR MARKET CARPET. It’s easy to see which were the top gainers in the sector. The table on the right can be sorted in ascending or descending order. Double click on any box to see the Symbol Summary page for the ticker symbol.Image source: StockCharts.com.

The table on the right shows the top-performing stocks in the sector.

Create a ChartList of energy stocks and populate it with the stocks listed in the table. Top performers as of this writing are Diamondback Energy (FANG), Williams Cos., Inc. (WMB), APA Corporation (APA), Occidental Petroleum (OXY), and Marathon (MRO). And don’t forget Vistra Energy (VST), the top StockCharts Technical Rank stock.

Before adding the stocks to your ChartList, you may want to analyze each one more closely. Double-clicking on the box of any stock will open the Symbol Summary page for the selected symbol.

Other Areas To Consider

Metals and stocks of Chinese companies have also been rallying. Gold, silver, and copper prices saw significant rises. The iShares China Large-Cap ETF (FXI) gapped higher, hitting a new 52-week high. Our blog posts cover both topics deeply, so check out the articles.

The first trading week of October ends on a strong note. But it is October, and historically, the month tends to be volatile, especially in an election year. Plus, earnings season kicks off at the end of next week. This means there’s all the more reason to be cautious.

End-of-Week Wrap-Up

• S&P 500 closed up 0.22% for the week, at 5751.07, Dow Jones Industrial Average up 0.09% for the week at 42,352.75; Nasdaq Composite closed up 0.10% for the week at 18,137.95
• $VIX up 13.27% for the week, closing at 19.21
• Best performing sector for the week: Energy
• Worst performing sector for the week: Consumer Staples
• Top 5 Large Cap SCTR stocks: Vistra Energy Corp. (VST); KE Holdings, Inc. (BEKE); JD.com, Inc. (JD); Applovin Corp (APP); Carvana (CVNA)

On the Radar Next Week

• Fed speeches
• September Consumer Price Index (CPI)
• September Producer Price Index (PPI)
• Earnings season kicks off with JP Morgan Chase (JPM), Wells Fargo (WFC), and Delta Airlines (DAL)

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.