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Today’s Summary
Wednesday, February 3rd, 2021
Indices: US Stocks were little changed in today’s session. The Dow Jones Industrial Average inched higher by just 36 points or 0.12%. The S&P 500 ticked up 0.10% while the Nasdaq ticked down just 0.02%. The Russell 2000 outperformed, rising 0.38%.
Sectors: 6 of the 11 sectors closed higher. Energy led significantly, gaining 4.27%. Health Care lagged, falling 0.71%.
Commodities: Crude Oil futures rose 0.45% to $55.69 per barrel. Gold futures were flat and continue to trade at $1,835 per ounce.
Currencies: The US Dollar Index slipped 0.11%.
Interest Rates: The 10-year US Treasury yield rose to 1.155%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
?Ethereum all-time highs. First target 2500. $ETHE #Ethereum #cryptocurrencies pic.twitter.com/mBI1UfkQeP
— Greg Rieben (@gregrieben) February 3, 2021
Today’s Chart of the Day was shared on Twitter by Greg Rieben (@gregrieben). It’s a weekly candlestick chart of the second-largest cryptocurrency, Ethereum ($ETHUSD). Ethereum continues to print fresh all-time highs. Why do we care about all-time highs? Because at all-time highs, there’s virtually no overhead supply to prevent price from moving significantly higher. When price is in uncharted territory like this, Fibonacci extensions are one of the only useful tools for figuring out a price target. In this case, the 161.8% Fibonacci extension is around $2,500, which represents more than 50% upside from the current price of $1,600.
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Quote of the Day
“He who wishes to be rich in a day will be hanged in a year.”
– Leonardo da Vinci
Top Links
We Saw More Volume This Week Than We Have During Lehman, Brexit, and Covid: Technical Analyst – BNN Bloomberg
In this clip, Chris Verrone of Strategas Research offers his technical perspective on the current market environment.
People Are Scared Of Their Own Shadow – All Star Charts
JC Parets checks in on market sentiment.
A New Act Or a Small Shift? – Bespoke
Bespoke examines relative sector performance.
De-Grossing and the Butterfly Effect – The Irrelevant Investor
Michael Batnick discusses the implications of last week’s de-grossing.
Let Them Trade… – Exchanging Thoughts
Jay Woods shares some words of wisdom relating to the GameStop saga.
Top Tweets
A week ago, the $VIX saw its 3rd largest single-day spike in history (+62%). All of that increase has been erased as of today's close with volatility moving sharply lower. pic.twitter.com/mfex1VHZXo
— Charlie Bilello (@charliebilello) February 3, 2021
FUNDSTRAT: “Large 3-day VIX drop in VIX EVER… Now with Wednesday trading day behind us, we have more evidence that stocks likely have made the 1H bottom.” @fundstrat pic.twitter.com/MosbBSYFW1
— Carl Quintanilla (@carlquintanilla) February 3, 2021
Attention asset allocators… stocks > bonds & stocks > gold. pic.twitter.com/snp68A1yoj
— Strategas (@StrategasRP) February 3, 2021
New lows today in 20+ Year Treasury Bonds $TLT pic.twitter.com/mIgrdaJnRj
— R. Alfonso Depablos (@AlfCharts) February 3, 2021
US yield curve continues to steepen, with 5Y-30Y spread trading at the steepest level in more than 5 years. pic.twitter.com/BQUHh5tNy5
— xero (@TradingandMore) February 3, 2021
"Hold the line" ? Heck no. "Respect the line." pic.twitter.com/rI3RuJl3HV
— Brian G (@alphacharts) February 3, 2021
"History doesn't repeat itself, but it often rhymes"
Is the breakout in Ethereum finally on? $ETH $BTC #Ethereum #Bitcoin pic.twitter.com/Uv5WqCRuAx
— Louis Sykes (@haumicharts) February 3, 2021
you heard it here first.$ETH $BTC pic.twitter.com/AIFcyMwEcS
— J4 (@J4_doji) February 3, 2021
As bitcoin has consolidated, the ratio of ethereum to bitcoin has risen to its best level since mid-2018. https://t.co/9tZIBwV5sJ pic.twitter.com/CmageTo3uv
— Bespoke (@bespokeinvest) February 3, 2021
We’re talking about bubbles, but the VIX (the stock market’s fear gauge) is still above-average.
I think about that a lot ?
— Callie Cox (@callieabost) February 3, 2021