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Today’s Summary
Thursday, March 18th, 2021
Indices: US Stocks closed lower in today’s session with the Dow Jone Industrial Average slipping 153 points or 0.46%. The S&P 500 and Nasdaq dropped 1.48% and 3.02%, respectively. The Russell 2000 fell 2.94%.
Sectors: Financials was the sector that closed higher, rising 0.52%. Energy lagged significantly, dropping 4.49%.
Commodities: Crude Oil futures tumbled 7.72% to $59.61 per barrel. Gold futures inched higher by 0.31% to $1,733 per ounce.
Currencies: The US Dollar Index gained 0.42%.
Interest Rates: The 10-year US Treasury yield jumped to a new 52-week high of 1.719%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Gold miners continue to hang on above critical area of support. $GDX $GLD #gold pic.twitter.com/lq2mLD1TZH
— Greg Rieben (@gregrieben) March 18, 2021
Today’s Chart of the Day was shared on Twitter by Greg Rieben (@gregrieben). It’s a weekly candlestick chart of the Gold Mining ETF, $GDX, over the past five years. A few weeks ago, we took a look at $GDX as it tested a crucial level around $31-32. In textbook fashion, former resistance turned into support and $GDX has bounced slightly higher. In a comment to The Chart Report, Greg said, “Gold bulls stepped up in early March pushing the price of gold back above the closely watched $1700 level. The gold miners rallied in response and are now facing their first major test at trendline resistance which has stalled rallies since mid-August. Will this be another failed attempt at a rally? Or will price finally break this persistent downtrend that started 7 months ago?”
Quote of the Day
“Luck is not a business model.”
– Anthony Bourdain
Top Links
Most Important Price Point For Tech Stocks Since Dot.com Highs? – Kimble Charting Solutions
Chris Kimble takes a look at a long-term chart of Semiconductors vs. the S&P 500.
Do Higher Rates Not Matter Anymore? – Talking Data
Jim Bianco and Ben Breitholtz discuss the macro implications of higher interest rates.
Zig Zag – Marea Market Musings
Dan Russo shares his thoughts on Bonds.
Markets Under Pressure As Yields Rise, Ed Clissold Weighs In – TD Ameritrade Network
In this clip, Ed Clissold of Ned Davis Research offers his thoughts on the impact of higher interest rates.
Optimism Growing Across Indicators – Bespoke
Bespoke analyzes the results of the latest sentiment surveys.
Top Tweets
Today was the S&P 500's second-largest drop after reaching a record high (the previous day) since May 1999.
Only larger drop after a record? The 3.5% slide on 9/2/2020.
— Callie Cox (@callieabost) March 18, 2021
Big red. But reverse weight S&P 500 is about unchanged.$OEF -1.7%$SPY -1.5%$RSP -1.1%$RVRS +0.1% pic.twitter.com/Xbnpnp9hLB
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) March 18, 2021
$NQ 1h
2 important pivots:
1. 13250 or 61.8% Fibonacci. If NQ moves above this level, odds will favor higher prices (and potentially a retest of 13900)
2. 12850 or 38.2% Fibonacci. If NQ drops below it, odds will favor lower prices (and potentially a retest of 12200)
If-then! pic.twitter.com/RxAKgFDyk3
— Yuriy Matso (@yuriymatso) March 18, 2021
The market has become so "rotational" that value and momentum stocks have become inversely correlated.
This is a strange and challenging time. pic.twitter.com/vLjm9Xqfx4
— Danny Merkel (@ChartingTrends) March 18, 2021
$XLF $XLK $JPM $AAPL $MSFT
It does appear the elephant is walking past everyone in plain sight.
The message is currently that Financials are outperforming Tech, and it might only be getting started. pic.twitter.com/HYiLeqids9— Sam McCallum (@honeystocks1) March 18, 2021
didn't realize that Goldman and JPMorgan shares were at all-time highs. neat pic.twitter.com/QYISKrOtTP
— Katie Greifeld (@kgreifeld) March 18, 2021
Retest in progress. #EmergingMarkets pic.twitter.com/Z8Eky6rw8Z
— Mark Ungewitter (@mark_ungewitter) March 18, 2021
1.7% let's goo pic.twitter.com/JkgR2QKl4K
— Dani Burger (@daniburgz) March 18, 2021
It just keeps getting worse for bonds $TLT…. vs $GLD $SPY $CRB pic.twitter.com/2ai3W5gris
— Grant Hawkridge (@granthawkridge) March 18, 2021
Bulls actually DON'T want to see Bonds collapse here…
Some near-term churn would likely be the best-case scenario, as a breakdown could create a swift move in rates that puts pressure on markets.
Feels like we're back in that "Goldilocks" environment again $TNX $TLT pic.twitter.com/o25El3IPEv
— Steven Strazza (@sstrazza) March 18, 2021
On a weekly basis, $TLT 14 period RSI is the most oversold it has ever been pic.twitter.com/yaVXgH1oG0
— Rolando Santos (@TKPTrader) March 18, 2021
Ouch! Crude #oil down more than 7%, back below USD 60. pic.twitter.com/lJiIGGqbBX
— jeroen blokland (@jsblokland) March 18, 2021
Crude oil: So if we look at seasonal tendencies…and I picked the 20 & 30 year because last year threw a wrench in shorter-term models ..we typically see a decline in prices into mid-march pic.twitter.com/nqoAuu40FW
— ??? (@chigrl) March 18, 2021
Crude oil down 8% in 8 days. What's the over-under on my gas station still raising prices lol. pic.twitter.com/QKnyzA1vkw
— Chris Robinson (@cer_hedge) March 18, 2021