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Today’s Summary
Wednesday, February 17th, 2021
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average rose 90 points or 0.29%. The S&P 500 was flat (0.03%), while the Nasdaq slipped 0.58%. The Russell 2000 underperformed, falling 0.74%.
Sectors: 8 of the 11 sectors closed higher. Energy led for the third straight day, gaining 1.49%. Tech lagged, falling 0.88%.
Commodities: Crude Oil futures rose 1.82% to a new 52-week high of $61.14 per barrel. Gold futures fell for the fourth consecutive day, slipping 1.46% to $1,773 per ounce.
Currencies: The US Dollar Index gained 0.45%.
Interest Rates: The 10-year US Treasury yield fell to 1.275%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Why the big picture is critical – especially now:
Nearly all global Stock markets are back in uptrends (rising 200dmas).
This condition defined all Bull Markets in history.
It's one of the strongest readings ever – usually seen at the start of Major advances. Follow the trend. pic.twitter.com/vnew2jU9hG
— Macro Charts (@MacroCharts) February 17, 2021
Today’s Chart of the Day was shared on Twitter by Macro Charts (@MacroCharts). It’s a chart of the MSCI World Index over the past three decades. Macro Charts points out that global breadth is extremely strong right now. The indicator on the chart shows that nearly all global stock markets are in uptrends, as defined by a rising 200-day moving average. We can add this to the long list of indicators that are “overbought” right now, but let’s not forget, overbought readings are often bullish long-term signals. Especially in the case of this particular indicator. Could we get a 5% or 10% correction in the near-term? Sure! But as Macro Charts notes, these global breadth thrusts have historically been observed at the start of bull markets, not at the end. Risk management is always important, but top-calling seems futile in the context of some of these long-term bullish developments.
Quote of the Day
“Markets change minute-by-minute. Human nature barely changes millennium-by-millennium. There’s your edge.”
– Jim O’Shaughnessy
Top Links
Is it Time for the Laggards to Shine? – All Star Charts
Steve Strazza takes a look at Energy and Financials.
Emerging Markets, Chinese Leadership, and Bonds Weakness – Alf Charts
Alfonso Depablos highlights some noteworthy trends.
The Cathie Wood Report – The Rotation Report
Aaron Jackson shares his thoughts on some of the major trends across the markets right now.
Understanding Your Inner Market w/ Dr. Andrew Menaker – Technical Analysis Radio
Here’s a good conversation on investor psychology between JC Parets and Dr. Andrew Menaker.
Market ‘Mania’ Means Fast Money, For Now, Wall Street Forecaster Jim Bianco Says – CNBC
Jim Bianco weighs-in on the frothy market environment.
Top Tweets
The S&P 500 fell 0.06% and 0.03% the past 2 days.
That is the smallest 2 day consecutive drop since July 2017.
In fact, it ranks as the 24th smallest 2 day consecutive decline ever.
— Ryan Detrick, CMT (@RyanDetrick) February 17, 2021
Another Dow Theory buy signal?$INDU $TRAN pic.twitter.com/sZguwpjDUh
— Cam Hui, CFA (@HumbleStudent) February 17, 2021
FAAMG (equally weighted) rise in absolute terms but continues to under-perform the S&P 500 as small caps take the reigns of leadership. pic.twitter.com/it19mr9knH
— Andrew Thrasher, CMT (@AndrewThrasher) February 17, 2021
The Solactive MicroSectors U.S. Big Banks Index closed at a daily ATH today. It's up 13.8% YTD.
Source: @TradingView pic.twitter.com/0enVEaKi5v
— MicroSectors (@msectors) February 17, 2021
$FXI is trying to break above a $54.4 level, which has stopped three rally attempts in the past 12 years. pic.twitter.com/KvDEWUjNtw
— Elena Popina (@lena_popina) February 17, 2021
It's still a bull market, just don't get too complacent. If your trades go against you, don't be a hero. pic.twitter.com/mxXurIZKJI
— Brian G (@alphacharts) February 17, 2021
$GLD / $SPX ratio < 200-week average. Long-term perspective. pic.twitter.com/7gtEfNwOVv
— Mark Ungewitter (@mark_ungewitter) February 17, 2021
$AAPL Trendline break on the daily. pic.twitter.com/YwlG5R5liu
— Greg Rieben (@gregrieben) February 17, 2021
Gotta love the stochastics…$AAPL is a good case in point as it takes out its 10-wk MA following an overbought downturn #fairleadstrategies pic.twitter.com/mhckYTF7jJ
— Katie Stockton, CMT (@StocktonKatie) February 17, 2021
#cryptocurrency #cryptocurrencies — Bitcoin 1500% swing up, after prior swing down <= -75%. pic.twitter.com/ZQWsthztPV
— Nautilus Research (@NautilusCap) February 17, 2021
Big picture $BTC
Bitcoin is undergoing its third parabolic advance in the past decade. A parabolic advance on an arithmetic scale is extremely rare – three on a log scale is historic pic.twitter.com/fyyM5Ws6N5— Peter Brandt (@PeterLBrandt) February 16, 2021