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Today’s Summary
Wednesday, February 10th, 2021
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average rose 62 points or 0.20%. The S&P 500 was flat (0.03%) while the Nasdaq slipped 0.25%. The Russell 2000 underperformed, falling 0.72%.
Sectors: 5 of the 11 sectors closed higher. Energy led, rising 1.91%. Consumer Discretionary lagged, falling 0.99%.
Commodities: Crude Oil futures moved higher for the eighth consecutive day, gaining 0.55% to $58.68 per barrel. Gold futures rose 0.28% to $1,843 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The 10-year US Treasury yield moved lower to 1.124%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Down we go again $DXY pic.twitter.com/J4LsX1Ovfj
— Grant Hawkridge (@granthawkridge) February 10, 2021
Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). Grant points out that the US Dollar Index has resumed its structural downtrend this week. In mid-January, we explained that a potential move higher in the Dollar would likely be a headwind for risk assets including Stocks, Commodities, and Cryptocurrencies. In the following weeks, the Dollar did in fact move higher, but risk assets were completely unaffected. Instead of feeling pressure from the Dollar’s bounce, we saw new highs across the board in Stocks, Commodities, and Cryptocurrencies. The Dollar’s recent move higher did nothing to slow the rally in risk assets. If anything, it just created more room for the Dollar to trend lower, which should only help risk-assets.
Quote of the Day
“I recognize that I may be wrong. This makes me insecure. My sense of insecurity keeps me alert, always ready to correct my errors.”
– George Soros
Top Links
Market’s Technical Signals – CNBC
Katie Stockton offers her technical perspective on the current market environment.
Short Interest Update – Bespoke
Bespoke analyzes the most recent short interest data.
The Best Momentum in 7 Years – SentimenTrader
Jason Goepfert shares some interesting insights on market breadth.
Weekly Town Hall Meeting – All Star Charts Plus
Willie Delwiche and JC Parets discuss trend, breadth, and sentiment.
Why Bulls Will Like The Year of the Ox – LPL Financial Research
With the Chinese New Year around the corner, the team at LPL Financial Research takes a look at how the S&P 500 has historically fared in the year of the Ox. Try not to read too far into this one folks!
Top Tweets
Micro-caps are now 54.61% above their 200-day moving average. This has been a phenomenal move risk-on move, nearly doubling the previous peak in 2009. $IWC $SPY pic.twitter.com/2FzOPpagHA
— Matthew Timpane, CMT (@mtimpane) February 10, 2021
Unparalleled… small-caps now >40% above 200-day average. pic.twitter.com/CayadX5oat
— Strategas (@StrategasRP) February 10, 2021
who thinks Financials finally break out of this base? $XLF pic.twitter.com/DWOzMfqwIh
— J.C. Parets (@allstarcharts) February 10, 2021
Energy continues to trade well. Here's the Weekly chart of $XLE. A lot of room up to the next major potential resistance around 54-55. pic.twitter.com/P5lnhDjh0G
— Jack Damn (@JackDamn) February 10, 2021
Communication Sector breaking out to new all-time highs relative to the S&P 500.$XLC vs $SPY
Curiously the top 1 holding into this ETF is Facebook (19.7%), which has done nothing in the last five months. So imagine if $FB wakes up ? pic.twitter.com/ikvNZ6SvAp
— R. Alfonso Depablos (@AlfCharts) February 10, 2021
The $VIX came close to slipping the 20 handle, but the market's favorite volatility index held the line for the 243rd trading day north of the rough historical average pic.twitter.com/nXt9TfWu8v
— John Kicklighter (@JohnKicklighter) February 10, 2021
US Dollar Index ready to break down again? pic.twitter.com/DikDLPb8ZZ
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 10, 2021
Crude Oil up for the 8th day in a row, highest close since Jan 10 of last year. $WTIC pic.twitter.com/m8Uu184dMN
— Charlie Bilello (@charliebilello) February 10, 2021
$TLRY just had its largest daily gain since last March and the third largest move ever. pic.twitter.com/gHpN0hKa9n
— MicroSectors (@msectors) February 10, 2021
$CGC (Pharmaceuticals) Another big Cannabis stock resuming its uptrend higher after forming a 3-year base. pic.twitter.com/sVAlRbZOXF
— Pratyush Tulsian (@PrattyCharts) February 10, 2021
Pot-stock ETF $MJ up 13.7% today and trading at highest levels since May 2019 pic.twitter.com/cnxvBqVyAs
— Fred Imbert (@foimbert) February 10, 2021