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Today’s Summary
Friday, February 19th, 2021
Indices: US Stocks were mixed in today’s session. The Dow was completely unchanged. The S&P 500 inched lower by 0.19%, while the Nasdaq was flat (0.07%). The Russell 2000 significantly outperformed, gaining 2.18%.
Sectors: 2 of the 11 sectors closed higher. Materials led, rising 1.83%. Utilities lagged, falling 1.49%.
Commodities: Crude Oil futures fell 2.10% to $59.26 per barrel. Gold futures inched higher by 0.14% to $1,777 per ounce.
Currencies: The US Dollar Index slipped 0.28%.
Interest Rates: The 10-year US Treasury yield rose to 1.348%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$XLF S&P Financials 1W
Clean move here. pic.twitter.com/TCMLlQ7YMl
— Shane C. Murphy (@murphycharts) February 19, 2021
Today’s Chart of the Day was shared on Twitter by Shane Murphy (@murphycharts). It’s a weekly candlestick chart of the Financial sector ETF, $XLF, over the past five years. The largest stocks in this ETF include Berkshire Hathaway, JP Morgan, Bank of America, Wells Fargo, and Citigroup. Financials were the talk of the town this week, as they broke out to all-time highs for the first time since the Great Financial Crisis. In a comment to The Chart Report, Shane said “The action we’ve seen in interest rates recently has been a nice tailwind for this sector. If rates continue to push higher, I think Financials will follow suit. It’s hard to understate how bullish this is for the broader market picture. I don’t think we’ve ever had a bull market in which Financials didn’t participate. So, seeing Financials join the party is just another thing to check off the bull market checklist.”
Quote of the Day
“Tomorrow hopes we have learned something from yesterday.”
– John Wayne
Top Links
Today marks the one-year anniversary of the infamous Q1 2020 market peak. In this piece, the team at LPL Financial Research shares three lessons to take away from price action over the past year.
A Medium-Term Breadth Indicator Waves the Caution Flag – StockCharts
Art Hill points out that a bearish breadth divergence has formed on the Nasdaq.
Yahoo Finance Discussion of BYND IBB and TSLA – Yahoo Finance
In this clip, Brian Shannon offers his technical perspective on Biotech stocks, Beyond Meat, and Tesla.
Where Do We (Investors) Stand – David Cox
David Cox highlights some noteworthy technical developments from this week’s price action.
Is Alt Season Upon Us? – All Star Charts
Steve Strazza takes a look at the breakout in alternative cryptocurrencies.
Top Tweets
Here's a FACT for you (that is more silly coincidence than market signal).
Since 1950, the S&P 500 has gone through 10 declines of 20% or more. The stock market has never peaked in the same month twice in a row.https://t.co/vYQhl09KJq
— Callie Cox (@callieabost) February 19, 2021
We didn't know it at the time, but one year ago today marked the peak in the previous bull market and started the fastest bear market ever.
The S&P 500 went from an all-time high to down 20% in only 16 trading days, smashing the previous records from '29 and '87. pic.twitter.com/AWNe4ht1N3
— Ryan Detrick, CMT (@RyanDetrick) February 19, 2021
Happy 1-year anniversary to the peak of the longest bull market ever pic.twitter.com/CaNEowwaL4
— Sarah Ponczek (@SarahPonczek) February 19, 2021
NDR: With secular bull resuming, the rally in stocks could continue for another 878 days before reaching the mean number of days without a 20% decline in a secular bull. $SPY $SPX pic.twitter.com/ZGF1n2KyeI
— Matt ?, CMT (@topstockcharts) February 19, 2021
Still 3 hrs until closing but $NDX down 4 days in a row has led to poor R/R short term. Last 4 instances shown below. RSI has been thoroughly oversold at prior lows (top panel) pic.twitter.com/FTIdxVIIg8
— Urban Carmel (@ukarlewitz) February 19, 2021
Everyone is NOT long Equities (continued):$SPY had another mini-panic this month.
The market dropped a little and traders had one foot out the door.
Stocks don't usually Top like this – Traders are a long way from embracing this rally. Follow the trend. pic.twitter.com/CB0Gsqkl1y
— Macro Charts (@MacroCharts) February 19, 2021
$XLF is on ? $KBE $KRE $PSP $KCE $IAI $KIE pic.twitter.com/OrEEqy20nO
— Grant Hawkridge (@granthawkridge) February 19, 2021
It's been a brutal 15-years for E.M. pic.twitter.com/4Pi1JTJcCm
— Strategas (@StrategasRP) February 19, 2021
Copper won't quit. Trading above $4 now and at highest level since Sep 2011. pic.twitter.com/bYoJu2DrLK
— Willie Delwiche (@WillieDelwiche) February 19, 2021
With so many areas of the marketplace breaking out to new all-time highs, it's hard to own something that has been sloping downwards since September and is testing support with weakening momentum. #Gold, $GC_F, $GLD pic.twitter.com/MRu3mv8BkF
— Ian Culley (@IanCulley) February 19, 2021
10-year real yields on track for the biggest weekly jump since last March pic.twitter.com/N8DLlVuw5t
— Katie Greifeld (@kgreifeld) February 19, 2021
With today's action, 50 > 100 > 200 day EMAs in rates $TNX #bonds pic.twitter.com/8KO4x5h7dE
— Drew Wells, CMT, CIMA® (@DrewTheCharts) February 19, 2021
BREAKING! #bitcoin > USD 55,000. pic.twitter.com/I69dJ7UimL
— jeroen blokland (@jsblokland) February 19, 2021