Advisors in Focus- November 30, 2020 - InvestingChannel

Advisors in Focus- November 30, 2020

Good morning and a Happy Monday! Market participants are shaking off the holiday malaise and getting back to work as we prepare to close the books on one of the best Novembers on record. The primary question for Financial Advisors will be whether or not markets can hold these gains as we enter the final month of 2020.

This week will help set the table for December as we have a number of key events including: corporate commentary from sell side conferences, testimony from Fed Chair Powell and Treasury Secretary Mnuchin, a jobs report, November auto sales, and tech earnings. However, one event and space is garnering the most attention from FAs.

  • Trivia Question- According to the Stock Trader’s Almanac, November is historically the best performing month for the S&P (+1.6%). This year, we are on pace to set the all-time record for returns. What year currently holds the record?

Energy has been a beneficiary of the ‘Re-Opening Trade’ as a slew of vaccine headlines has pushed investors into the space. Energy is on pace for a record month of gains in the S&P. Last week we saw search activity from Financial Advisors increase while oil, stocks and ETFs rallied. The research comes ahead of a two day OPEC meeting that kicked off this morning. The group is expected to decide on whether it will extend existing oil cuts for three to four months or lift its output gradually. The decision, which is expected tomorrow morning, can have an impact on prices.

TrackStarIQ Data

TOP ETFS – BY ALL FAs (Total Traffic) Last WeekTickerTOP ETFS BY FAs w/ AUM>$1B (Total Traffic) Last WeekTickerTOP INDUSTRIES BY ALL FAs (Total Traffic) Last Week TOP ETF CATEGORIES BY ALL FAs (Total Traffic) Last Week
SPDR S&P 500 ETFSPYVanEck Vectors Gold Miners ETFGDXBiotechnologyLarge Cap Growth Equities
Invesco QQQQQQSPDR S&P 500 ETFSPYSoftware – ApplicationLeveraged Equities
VanEck Vectors Gold Miners ETFGDXInvesco QQQQQQAuto ManufacturersPrecious Metals
iShares Russell 2000 ETFIWMiShares Russell 2000 ETFIWMConsumer ElectronicsTechnology Equities
Consumer Discretionary Select Sector SPDR FundXLYiShares MSCI Emerging Markets ETFEEMSpecialty ChemicalsMaterials
ProShares Ultra VIX Short-Term FuturesUVXYSPDR Gold TrustGLDConglomeratesConsumer Discretionary Equities
ProShares UltraPro QQQTQQQiShares Core S&P Mid-Cap ETFIJHDrug Manufacturers – Specialty & GenericAll Cap Equities
SPDR Dow Jones Industrial Average ETFDIAFinancial Select Sector SPDR FundXLFInternet RetailEnergy Equities
SPDR Gold TrustGLDSPDR S&P Regional Banking ETFKREElectrical Equipment & PartsSmall Cap Growth Equities
Energy Select Sector SPDR FundXLEInvesco DB US Dollar Index Bullish FundUUPInternet Content & InformationAlternative Energy Equities
Direxion Daily S&P Oil & Gas Exploration & Production Bull 2x SharesGUSHiShares Silver TrustSLVSpecialty RetailHealth & Biotech Equities
ARK Innovation ETFARKKARK Web x.0 ETFARKWDiagnostics & ResearchLeveraged Volatility
iShares Silver TrustSLVU.S. Global Jets ETFJETSOil & Gas E&PSmall Cap Blend Equities
ProShares UltraPro Short QQQSQQQARK Innovation ETFARKKCredit ServicesIndustrials Equities
Credit Suisse X-Links Crude Oil Shares Covered Call ETNUSOIInvesco Solar ETFTANSemiconductorsLarge Cap Blend Equities
Technology Select Sector SPDR FundXLKInvesco Taxable Municipal Bond ETFBABSoftware – InfrastructureAsia Pacific Equities
ProShares Ultra Bloomberg Natural GasBOILARK Genomic Revolution ETFARKGMedical DevicesFinancials Equities
ETFMG Alternative Harvest ETFMJAlerian MLP ETFAMLPAuto PartsLeveraged Commodities
Direxion Daily Small Cap Bull 3X SharesTNAVanEck Vectors Rare Earth/Strategic Metals ETFREMXAerospace & DefenseVolatility
United States Oil FundUSOGlobal X Thematic Growth ETFGXTGEntertainmentChina Equities

The Top ETF Searches by All Financial Advisors include the Energy Select SPDR Fund (XLE), up 27% in November, the Direxion Daily Oil & Gas Exploration and Production ETF (GUSH), a 2x Bull ETF up 84% this month, and the Credit Suisse Crude Shares ETN (USOI), up 13%. The gains in these names have been impressive so it has us wondering, is the research setting up the space for a ‘Sell the News’ reaction to this week’s OPEC announcement or a potential ‘Fear of Missing Out’ trade in December? Today, we are seeing energy as a laggard with the XLE down over 3% suggesting profit taking. FAs will continue to monitor price action as they look for returns to close out a volatile year. 

Trivia Answer- In 1980 (also an election year), the S&P rose a record 10.2%. The record decline was 11.2% in 1973 during the Oil Crisis.

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