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Today’s Summary
Thursday, January 7th, 2021
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 212 points or 0.69%. The S&P 500 and Nasdaq rose 1.48% and 2.56%, respectively. The Russell 2000 gained 1.48%.
Sectors: 9 of the 11 sectors closed higher. Tech led, rising 2.70%. Utilities lagged, falling 1.31%.
Commodities: Crude Oil futures moved higher by 0.57% to $50.92 per barrel. Gold futures rose 0.26% to $1,914 per ounce.
Currencies: The US Dollar Index gained 0.32%.
Interest Rates: The 10-year US Treasury yield rose to 1.083%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
U.S. 10-year note:1.4% magnet? pic.twitter.com/dSrSVPXAWZ
— Mark Ungewitter (@mark_ungewitter) January 7, 2021
Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). It’s a chart of the US 10-year Treasury yield. The 10-year yield broke above 1% yesterday for the first time since March. As Mark points out, the next area of resistance is around 1.40%. This level acted as support for about 8-years. As Mark notes, these key levels often act as magnets. The longer-term trend is still lower, but as long as we’re above 1%, there’s no reason to think yields won’t test 1.40%. Keep an eye on this development as higher yields will impact every other asset class.
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Quote of the Day
“Opportunities multiply as they are seized.”
– Sun Tzu
Top Links
Asset Class Performance to Start 2021 – Bespoke
In this note, Bespoke breaks down YTD asset class performance. It’s still very early in the year, but several areas of the markets are already off to a hot start in 2021.
Commodities are Breaking Out in 2021 – The Compound
Josh Brown and JC Parets highlight some of the major long-term trends that are in play right now.
Financial Will Benefit From a Steeper Yield Curve in 2021: Technical Analyst – BNN Bloomberg
In this clip, Chris Verrone of Strategas Research offers his thoughts on the steepening yield curve.
Bonds Break – Cully Charts
Ian Cully examines the weakness in Treasury Bonds.
10 Things I’ll be Watching Closely in 2021 – The Irrelevant Investor
Here’s a good read from Michael Batnick on the 10 themes he’s watching this year.
Top Tweets
2021 was an exciting year…
YTD gains 4 days in:
1 $BTC #Bitcoin +36%
2 $TAN Solar +18%
3 $MJ Marijuana +18%
4 $PBW Alt Energy +18%
5 $LIT Lithium +17%
6 $OIH Oil Svcs +15%
7 $XOP Oil & Gas Explor +14%
8 $KRE Reg Banks +11%
9 $ARKK Dis Innvtion +11%
10 $XME Metals +11%— Frank Cappelleri (@FrankCappelleri) January 7, 2021
The $NDX jumped 2.5% today. 2020 saw the most gains over 2.5% since 2008. How many will we see in 2021? pic.twitter.com/7P62ksydIL
— MicroSectors (@msectors) January 7, 2021
When 30+% of stocks hit a 65-day high, it's viewed as a breadth thrust which is long-term positive but also has often been followed by a couple short-term pullbacks.
Yesterday we had 31.8% of stocks at a 65-day high. pic.twitter.com/vBD7TpPqUs
— Andrew Thrasher, CMT (@AndrewThrasher) January 7, 2021
Russell 2000 relative to its 200d moving average highest ever
[Past performance is no guarantee of future results] pic.twitter.com/17KN30nypw— Liz Ann Sonders (@LizAnnSonders) January 7, 2021
Equal-Weight Financials now above those January 2018 highs. pic.twitter.com/UZ41HTQnfF
— Ian McMillan, CMT (@the_chart_life) January 7, 2021
Lots of 'highs' in financials industries $KRE $KRE $PSP $KCE $IAI $KBE pic.twitter.com/rI1NDxwFHY
— Grant Hawkridge (@granthawkridge) January 7, 2021
Ten Year Yield finally > 1% and this chart (2 yr vs 10 yr yield spread) is why regional banks $KRE are so impressive right now. The trend is your friend, even in terms of a steepening yield curve! $TNX pic.twitter.com/HacVW5skvO
— David Keller, CMT (@DKellerCMT) January 7, 2021
$TLT #Rates — TLT Remains in Bearish Cycle Until 9/2021—– Trend-line Break. pic.twitter.com/CpPXtS1pmE
— Nautilus Research (@NautilusCap) January 7, 2021
$GC_F $GLD $GDX It seems like the majority have written off gold and dumped it for $BTC.X. Price tells me that you shouldn't forget about it as long as it trades above 1750. pic.twitter.com/BRU041z9uC
— Greg Rieben (@gregrieben) January 7, 2021
Truly amazing! #bitcoin hits USD 40,000 for the first time ever, rising 100% in just three weeks. pic.twitter.com/4VfKo5t2Bu
— jeroen blokland (@jsblokland) January 7, 2021
I don't always use non-log charts, but when I do, I prefer it's $BTC going from 10K to 40K in under 90 days. https://t.co/s6OdbqKxUe pic.twitter.com/VDfixkJoAc
— Arun S. Chopra CFA CMT? (@FusionptCapital) January 7, 2021