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Today’s Summary
Tuesday, February 2nd, 2021
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average advancing 476 points or 1.57%. The S&P 500 and Nasdaq rose 1.39% and 1.56%, respectively. The Russell 2000 slightly underperformed, but still gained 1.19%.
Sectors: All 11 sectors closed higher for the second straight day. Financials led, rising 2.42%. Health Care lagged but still gained 0.29%.
Commodities: Crude Oil futures moved higher by 2.26% to a 1-year high of $54.76 per barrel. Gold futures dropped 1.64% to $1,833 per ounce.
Currencies: The US Dollar Index inched higher by 0.07%.
Interest Rates: The 10-year US Treasury yield rose to 1.101%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$30.39 on Mar21 Silver. Above=Good, Below=Bad.
Every once in awhile it’s just not all that complicated. Either price takes out resistance and the race higher begins (maybe) … or it bashes it’s head painfully against resistance and falls off the ladder. Thud. pic.twitter.com/p7b0zbBy6i— Jay Kaeppel (@jaykaeppel) February 2, 2021
Today’s Chart of the Day was shared on Twitter by Jay Kaeppel (@jaykaeppel). It’s a daily bar chart of Silver futures over the past nine months. There has been a ton of buzz over Silver this week. The metal surged nearly 10% yesterday as the infamous Reddit mob behind GameStop attempted to orchestrate a similar short squeeze. The funny thing about that is, unlike GameStop, there were no shorts to squeeze. Large speculators were actually net long Silver futures. Sure enough, Silver was rejected at the August highs and it has already given back yesterday’s entire gain. For all the ink spilled over Silver this week, Jay points out that the trade doesn’t have to be complicated. Wait until price confirms a breakout by closing above resistance. But until a breakout is confirmed, there’s no reason to get involved.
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Quote of the Day
“There’s nothing in this world which will so violently distort a man’s judgment more than the sight of his neighbor getting rich.”
– J.P. Morgan
Top Links
The Untitled Chart Show w/ Josh Brown – All Star Charts
In this video, Josh Brown and JC Parets highlight some of the big picture trends that are in play.
Dollar and Domestics Rebound – Bespoke
Bespoke weighs-in on the recent strength in the US Dollar.
Tech Setups Heading Into Earnings – AlphaCharts Blog
Brian at AlphaCharts examines the charts of some of the Mega-Cap tech stocks that report earnings this week.
Commodity Super Cycle – Marea Market Musings
Dan Russo lays out the bull case for Commodities.
Typical February Trading: Lackluster Over Last 21 Years – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how stocks have historically performed in February.
Top Tweets
Strong stock rallies happen all the time…but not at these levels.
The S&P 500 just rallied >1% for two straight days to land within 1% of a record high, the first time that's happened since November (and fourth time since 2000).
— Callie Cox (@callieabost) February 2, 2021
Excellent analysis of historic $VIX spikes via JPM:
"When the VIX sees a spike such as last week's, the market has been up 100% of the time over the next 1M and 6M outside of recessions."
Note the *significant* positive returns on all time frames – and the 12M median at +15.8%. pic.twitter.com/IH2x2clRBA
— Macro Charts (@MacroCharts) February 2, 2021
In recent decades, lower highs in $VIX following cyclical bottoms in $SPX have indicated market health. Higher highs have indicated initial cracks, or worse. pic.twitter.com/BTscUk1jxD
— Mark Ungewitter (@mark_ungewitter) February 2, 2021
$ETHUSD Looks like a massive base breakout in an uptrend for #Ethereum on high volume. pic.twitter.com/71gxaGF46Y
— Pratyush Tulsian (@PrattyCharts) February 2, 2021
It looks like $DXY is completing an 8-week H&S Bottom with a measured target around the 92.00 level and the August '20 lows. The underlying downtrend remains intact. #Bonds, #Stocks, #Commodities pic.twitter.com/EasLB0yOhq
— Ian Culley (@IanCulley) February 2, 2021
Silver looking more like "oops" than "oh yeah" at this point. $SLV pic.twitter.com/0pU5AUKF55
— Willie Delwiche (@WillieDelwiche) February 2, 2021
$WTI Crude oil, 52 week high. pic.twitter.com/SpPXW8HSFf
— Larry Tentarelli, Blue Chip Daily (@LMT978) February 2, 2021
$GME providing a quick and extreme example of the math around gains / losses. They aren't the same and a good reminder of why protecting against big losses is so important pic.twitter.com/GSqKJ8gVxs
— Gregory Krupinski (@G_krupins) February 2, 2021
Between the gap and additional losses, GameStop ($GME) is down 50% from Monday's close. Overall, from Thursday's record intraday high, we are down over 75%. Volume is also fading, which may show appetite to keep the stock up may be waning pic.twitter.com/vvAXLpGEII
— John Kicklighter (@JohnKicklighter) February 2, 2021
I can calculate the motion of heavenly bodies, but not the madness of men.
-Sir Isaac Newton pic.twitter.com/ULrXRVkBM8
— Danny Merkel (@ChartingTrends) February 2, 2021