Daily Chart Report ? Monday, January 4th, 2021

Today’s Summary
Monday, January 4th, 2021

Indices: US Stocks kicked off the new year on a sour note with the Dow Jones Industrial Average dropping 383 points or 1.25%. The S&P 500 and Nasdaq fell 1.48% and 1.47%, respectively. The Russell 2000 also fell 1.47%.

Sectors: Energy was the only sector to close higher, inching up just 0.16%. Real Estate lagged, dropping 3.23%.

Commodities: Crude Oil futures moved lower by 2.45% to $47.34 per barrel. Gold futures gained 2.73% to $1,947 per ounce.

Currencies: The US Dollar Index inched lower by just 0.06%.

Interest Rates: The 10-year US Treasury yield slipped to 0.913%.

Here are the best charts, articles, and ideas being shared on the web today!

Chart of the Day

Today’s Chart of the Day was shared on Rafa Marulanda (@rafatrade93). It's a ratio chart of Gold vs. US Treasury Bonds ($GC/$TLT). Ratio charts are great because they help to simplify opportunity cost for investors.  When the line is rising, it means Gold is outperforming Treasuries and vice versa. Both of these assets are perceived as safe-havens. But as Rafa points out, Gold looks like the more attractive safe-haven at the moment. As you can see, this ratio is breaking out of a multi-year base in favor of Gold. You already know what they say about big bases - "the bigger the base, the higher in space." Also, January has historically been the best month of the year for Gold. In a comment to The Chart Report Rafa said, "You have to listen to the market, and right now, the market is making a clear statement. Gold is the better bet here as far as safe-haven assets go."

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Quote of the Day

"Difficult roads often lead to beautiful destinations. The best is yet to come."

– Zig Ziglar