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Today’s Summary
Monday, February 22nd, 2021
Indices: US Stocks closed lower in today’s session. The Dow was pretty much flat (27 points or 0.09%). The S&P 500 fell 0.77% while the Nasdaq dropped 2.46%. The Russell 2000 slipped 0.69%.
Sectors: 6 of the 11 sectors closed higher. Energy led significantly, gaining 3.46%. Tech lagged, falling 2.21%.
Commodities: Crude Oil futures moved higher by 4.12% to $61.70 per barrel. Gold futures rose 1.74% to $1,808 per ounce.
Currencies: The US Dollar Index fell 0.32%.
Interest Rates: The 10-year US Treasury yield rose to 1.367%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#rates #10year — Resistance? pic.twitter.com/El8mIkyujP
— Nautilus Research (@NautilusCap) February 22, 2021
Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It’s a weekly bar chart of the US 10-year Treasury yield over the past decade. Nautilus Research points out that the 10-year yield is currently testing a key level around 1.35%-1.45%. This level represents the 61.8% Fibonacci retracement of the 2018-2020 decline. It’s also former support, which could potentially act as resistance now that we’re testing it from below. On the other hand, the Copper/Gold ratio suggests the 10-year yield will move significantly higher from here. Will the Copper/Gold ratio be correct here? Or, will the 10-year yield bump its head on resistance and continue trending lower? Either way, we’ll likely get an answer to these questions in the coming weeks, so keep an eye on this crucial level.
Quote of the Day
“If it’s obvious, it’s obviously wrong.”
– Joe Granville
Top Links
Alfonso Depablos examines the breakout in Financials.
Commodities Put the Pedal To The Metal – All Star Charts
Steve Strazza offers his take on Metals and other Commodities.
Inflation All Over the Tape – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight the hottest stocks, trends, and themes across the markets.
Calls On The Consumer – CNBC
Katie Stockton and Ari Wald share some of their favorite ways to play a recovery in consumer spending.
Happy Aniversary – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the technical developments on their radar right now.
Top Tweets
The S&P 500 fell for the fifth day in a row, but the combined drop is -1.48%. Just a nick.
— Eddy Elfenbein (@EddyElfenbein) February 22, 2021
Transports were looking dodgy in early Feb. New Highs today. $IYT pic.twitter.com/xFrQ8Nq25D
— Dan Russo, CMT (@DanRusso_CMT) February 22, 2021
$IYT hitting a new high. Banks, energy, small caps and transports at new highs. Hard to be bearish still. Much better places to look besides big tech at the moment. pic.twitter.com/WRuZp4Mryx
— Jason Perz (@JasonPerz138) February 22, 2021
Of the 30 best performing S&P 500 stocks year to date, a third are from the Energy sector: https://t.co/jvcMgXKoRl pic.twitter.com/AA3nYGWzB1
— Bespoke (@bespokeinvest) February 22, 2021
Value on track for best month vs. growth since Nov. 2016 pic.twitter.com/WMB6f5oOJZ
— Sarah Ponczek (@SarahPonczek) February 22, 2021
Why is the rotation from Growth to Value always a bit bumpy?
b/c Growth areas are much larger than Value areas in the $SPX
ie Tech is 27% of the $SPX where Energy is less than 3%
i discuss more in the my eod video pic.twitter.com/brcdzf4c4V
— Christian Fromhertz (@cfromhertz) February 22, 2021
The REVERSE index (SPX but reverse-cap weighted) up 0.70% today… pic.twitter.com/Ojqtvl2mdM
— Jonathan Krinsky,CMT (@jkrinskypga) February 22, 2021
Today was an impressive day for commodities in general, but copper's performance stood out in particular. It's trading at the highest levels since Aug 2011 and its 10-day rate of change is the fastest since Nov 2016: pic.twitter.com/T0yIb7t8za
— John Kicklighter (@JohnKicklighter) February 22, 2021
Copper vs. Gold surging pic.twitter.com/NloUQ96ghZ
— Strategas (@StrategasRP) February 22, 2021
From RenMac's Monday Morning Macro Meeting. Consensus growth is too low and copper is expressing this vs gold. That supports higher yields. @tomkeene $GLD $COPX $TLT pic.twitter.com/FHHFStUP0d
— RenMac: Renaissance Macro Research (@RenMacLLC) February 22, 2021
I think it's time for the long term Bitcoin chart again.
Severe pullbacks (-30% or greater) and consolidations moves for many months were common throughout the last major Stage 2 advance.
It's not easy to ride a raging bull market ? #bitcoin #btc #Crypto #cryptocurrencies pic.twitter.com/ptvRpkgbiG
— Stage Analysis (@stageanalysis) February 22, 2021