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Today’s Summary
Wednesday, January 6th, 2021
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average gained 438 points or 1.44%. The S&P 500 rose 0.57%, while the Nasdaq fell 0.61%. The Russell 2000 trounced the rest of the pack, jumping 3.98%.
Sectors: 8 of the 11 sectors closed higher. Financials led, gaining 4.42%. Tech lagged, falling 1.72%.
Commodities: Crude Oil futures rose 1.40% to $50.63 per barrel. Gold futures dropped 1.75% to $1,920 per ounce.
Currencies: The US Dollar Index was flat (0.02%).
Interest Rates: The 10-year US Treasury yield rose to 1.041% – the highest since March.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
3-year bear market for ACWI (ex. U.S.) is over. pic.twitter.com/usfDq9kahX
— Strategas (@StrategasRP) January 6, 2021
Today’s Chart of the Day was shared on Twitter by Strategas Research (@StrategasRP). It’s a chart of the MSCI All Country World Index (Ex. US) ETF, $ACWX, over the past four years. The top-weighted countries in the ETF include Japan, China, UK, France, and Canada. Strategas points out that $ACWX just broke out of a three-year base, and has begun to outperform US stocks in recent months. In a comment to The Chart Report, Todd Sohn of Strategas said, “I think this development is being overlooked. To us, this is the start of a new leg higher. You just exited a three-year bear market. I would encourage everyone to look at the individual markets in here such as Japan, China, France, and even Switzerland. We haven’t seen this type of broad-based strength in over three years, which can be considered bullish.”
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Quote of the Day
“The statement ‘market action discounts everything’ forms what is probably the cornerstone of technical analysis.”
– John Murphy
Top Links
Santa Claus Showed Up This Year – All Star Charts
JC Parets examines this year’s Santa Claus Rally.
Massive Outperformance From Renewables and Banks – Bespoke
Bespoke takes a look at two of today’s strongest industry groups – Banks and Clean Energy.
2020 in 20 Charts – LPL Financial Research
Ryan Detrick reviews some of the mind-blowing stats from last year.
Consumer Discretionary, Retail Stocks Hit All-Time Highs – CNBC
In this clip, Ari Wald of Oppenheimer shares his thoughts on Tech and Consumer Discretionary.
Here We Go Again! – Marea Market Musings
Dan Russo reminds us that trends often persist, regardless of election outcomes.
Top Tweets
Santa indeed came to town this year, with the S&P 500 adding 1.0% during this historically bullish 7-day period.
The big warning is when Santa doesn't come, so this is one less thing to worry about right now. pic.twitter.com/SpRATrhUuh
— Ryan Detrick, CMT (@RyanDetrick) January 6, 2021
Stocks vs bonds ratio breaking out above its 2018 highs is another indicator that we may be at the beginning of a new bull market, not at the end of one. Need to stay above ~2.37.$SPY vs $TLT
What do you think? ? pic.twitter.com/Z9iWuFfCls
— R. Alfonso Depablos (@AlfCharts) January 6, 2021
Here comes the outperformance from $EEM… finally joining the party #copper $SPY pic.twitter.com/XCel4GtjJp
— Grant Hawkridge (@granthawkridge) January 6, 2021
New highs for Solar $TAN relative to Energy $XLE pic.twitter.com/x3MitQc5EV
— Louis Sykes (@haumicharts) January 6, 2021
9 of 10 stocks in the Solactive MicroSectors U.S. Big Banks Index made 9-month highs today. pic.twitter.com/GrlYTGyGp1
— MicroSectors (@msectors) January 6, 2021
The best day for regional banks since the $PFE vaccine news. Thank the yield curve. pic.twitter.com/4gAI33Rkuz
— Dave Mazza (@MazzaDave) January 6, 2021
BREAKING! The 10-year US Treasury Yield rises to above 1.0% for the first time since March last year. pic.twitter.com/lMvwR9KZLB
— jeroen blokland (@jsblokland) January 6, 2021
10-year Treasury yields surpass 1% for the first time since the pandemic started strangling the global economy in March. The dollar weakens further, bumping against lows last seen in 2014. https://t.co/sevybVihnK pic.twitter.com/syuU9ouacM
— Lisa Abramowicz (@lisaabramowicz1) January 6, 2021
Bitcoin is now 80% above its December 2017 high. pic.twitter.com/zaaoxB2cJe
— Bespoke (@bespokeinvest) January 6, 2021
Bitcoin Beliebers, here are the next levels, 30K is key support while 47k next imo #Bitcoin pic.twitter.com/Xpc8RB9Zv9
— J.C. Parets (@allstarcharts) January 6, 2021
$GS "Big Bad Wall St" Looking pretty good under Dem control. pic.twitter.com/Rg1s4bpnsX
— RenMac: Renaissance Macro Research (@RenMacLLC) January 6, 2021
It is their job to entertain. It is your job to ignore. pic.twitter.com/6iO6uO2m45
— Charlie Bilello (@charliebilello) January 6, 2021