Daily Chart Report ? Monday, January 11th, 2021
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Today’s Summary
Monday, January 11th, 2021
Indices: US Stocks kicked off the week on a sour note, with the Dow Jones Industrial Average slipping 89 points or 0.29%. The S&P 500 and Nasdaq fell 0.66% and 1.25%, respectively. Small-Caps outperformed with the Russell 2000 closing flat (0.03%).
Sectors: 3 of the 11 sectors closed higher. Energy led, rising 1.57%. Consumer Discretionary lagged, falling 1.87%.
Commodities: Crude Oil futures inched lower by 0.11% to $52.18 per barrel. Gold futures rose 0.46% to $1,844 per ounce.
Currencies: The US Dollar Index gained 0.49%.
Interest Rates: The 10-year US Treasury yield moved higher for the fifth straight day to 1.148%
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 Twitter by Ian McMillan (@the_chart_life). It's a ratio chart of Stocks vs. Bonds over the past couple of decades (S&P 500 vs. US 30-yr Treasury Bond futures). As a reminder, when this ratio is rising, it means Stocks are outperforming Bonds, and vice versa. Ratio charts are useful because they address the issue of opportunity cost. Which asset will provide the best ROI? As Ian points out, it looks like the alpha remains in the Stock Market, while the opportunity cost continues to be in the Bond Market. In a comment to The Chart Report, Ian said, "I get why someone might be inclined to rotate out of Stocks after the outperformance we've seen in recent months. But right now, that trend is not showing any signs of exhaustion. I think it makes sense to continue being overweight Stocks and underweight US Treasuries, as long as this ratio remains above the former highs.
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Quote of the Day
"Water flows in only to flow out."
– Chinese Proverb
Top Links
There Has Been a Breakout in Breakouts - SentimenTrader
Jason Goepfert points out that the % of new 52-highs in the Russell 2000 just reached its highest since 2016.
Five Charts and Four Themes for the First Half of 2021 - StockCharts.com
Respected analyst Martin Pring shares five things he's watching in 2021.
Across The Pond - The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss the most noteworthy technical developments they're watching this week.
Sleeping Giants - The Rotation Report
Aaron Jackson offers up some attractive chart setups.
The Bull Is Still Strong - Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight some of the strongest stocks, trends, and themes across the markets.