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Todayās Summary
Tuesday, January 30, 2024
Indices:Ā DowĀ +0.35%Ā | S&P 500Ā -0.06%Ā | Nasdaq 100Ā -0.68%Ā | Russell 2000Ā -0.76%
Sectors:Ā 6 of the 11 sectors closed higher. Financials led, gainingĀ +1.26%. Real Estate lagged, falling justĀ -0.93%.
Commodities:Ā Crude Oil futures roseĀ +1.35%Ā to $77.82 per barrel. Gold futures roseĀ +1.26%Ā $2,051 per oz.
Currencies:Ā The US Dollar Index was flat for the third straight day at $103.42.
Crypto:Ā Bitcoin fellĀ Ā -0.83%Ā to $42,946. Ethereum roseĀ +1.07%Ā toĀ $2,343.
Volatility:Ā The Volatility Index fellĀ -2.13%Ā to 13.32.
Interest Rates:Ā The US 10-year Treasury yield fell to 4.034%.
Here areĀ the best charts, articles, and ideas shared on the web today!
Chart of the Day
$XLF been an absolute face ripper since October. Hasn't gotten the attention it deserves. This rally isn't all tech pic.twitter.com/P06RI5UqvQ
— FadeToBlack (@F4DE2BL4CK) January 30, 2024
š Todayās Chart of the Day was shared byĀ @F4DE2Bl4CK.
- The Financial Sector ($XLF) outperformed the S&P 500 today by the widest margin in over six months. It closed at a 2-year high, about 5% below all-time highs.
- Tech gets all the attention, but Financials have done just as well during the recent leg higher. Tech ($XLK) is upĀ +25.60%Ā since the Oct. 27th low in the S&P 500, while Financials ($XLF) are upĀ +25.39%.
- The sector also has very healthy breadth right now. Of the 75 stocks in $XLF, 97% are above their 200-DMA, while 94% are above their 50-DMA.
The takeaway:Ā Financials have shown impressive leadership since the Oct. low. It has become the second-largest sector of the S&P 500, and itās bullish to see that Tech isnāt the only area working.
Quote of the Day
āTrading isnāt simple enough to be boiled down to a punchy quote.”
ā Andreas Clenow
Top Links
January Barometer: Why it’s Important & Why it Works – Almanac Trader
Jeff Hirsch looks at a seasonal indicator known as the January Barometer.
February Market Outlook – Grindstone Intelligence
Austin Harrison highlights several things to watch next month.
Yet Another S&P 500 Target Hit – CappThesis
Frank Cappelleri reviews recent price action and patterns in the S&P 500.
āOnly Tech Driving This Marketā – All Star Charts
JC Parets points out that Tech isn’t the only game in town.
Should You Invest in Stocks at All-Time Highs? – Of Dollars and Data
Nick Maggiulli examines how stocks have historically performed after reaching all-time highs.
Top Tweets
The bear market ended 3 mos ago today on Oct 27, 2023 (63 trading days).
Up more than >19% in 3 months is rare air and historically quite bullish.
I found 18 other times (taking first signal in a cluster) and higher a yr later 15 times and up 13.5% avg and 16.1% median.
ššŖ pic.twitter.com/OB44OQbBdI
— Ryan Detrick, CMT (@RyanDetrick) January 30, 2024
Value stocks all-time high $VTV pic.twitter.com/p2vhFOTPuv
— Mike Zaccardi, CFA, CMT š (@MikeZaccardi) January 30, 2024
$ETN $MPC $NUE $V
4 different sectors, non-tech, breaking out to new highs. pic.twitter.com/EsGKePThsU— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) January 30, 2024
How small is a small cap index? The Russell 2000 has a market cap of $2.5 trillion, or 6% of the S&P 500ās $41 trillion market cap. This ratio is near a 15-year low. The 2 largest S&P 500 #stocks each have a higher market cap than the Russell 2000. pic.twitter.com/HeI3nGBUE3
— Cetera Investment Management (@ceteraIM) January 30, 2024
NH-NL continuing to weaken under the surface as the broad market creeps higher. something to keep in the back of your mind… pic.twitter.com/vQp8F6ceUs
— Ian McMillan, CMT (@the_chart_life) January 30, 2024
The number of new highs peaked 6 weeks ago pic.twitter.com/q9x3CN0tWj
— Austin Harrison, CFA, CMT (@meanstoatrend) January 30, 2024
Something odd is happening under the surface of the stock market.
The S&P 500 hit record highs last week at the same time an indicator of underlying selling pressure spiked to panic levels.Ā
That's never happened before. pic.twitter.com/yRq5BGVOdD
— SentimenTrader (@sentimentrader) January 30, 2024
Major SPY momentumā¦ rare occurrence where the 3-month % change and the current distance it is trading above the 200-day average are in the top quartile historically. pic.twitter.com/bnY5cJV0Xj
— Todd Sohn (@Todd_Sohn) January 30, 2024
$DXY #DXY #USDollar Always interesting to see things at the apex of a symmetrical triangle into an event like FOMC. pic.twitter.com/mb83mHsxrG
— Jake Wujastyk (@Jake__Wujastyk) January 31, 2024
Zoom out #bitcoin pic.twitter.com/2Ktqn3qxE9
— Jamie Coutts CMT (@Jamie1Coutts) January 30, 2024
OMG this is all only Tech stocks!! It's a bubble. This is 1999-2000 all over again. Tech can't keep the market up any longer. Nothing else is working!!!!
Germans: Hold my beer. pic.twitter.com/GKZscNtI1E
— J.C. Parets (@allstarcharts) January 30, 2024