Daily Chart Report ? Wednesday, January 13th, 2021
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Today’s Summary
Wednesday, January 13th, 2021
Indices: US Stocks were mixed in today's session. The Dow Jones Industrial Average was flat. The S&P 500 and Nasdaq rose 0.23% and 0.43%, respectively. The Russell 2000 underperformed, falling 0.75%.
Sectors: 6 of the 11 sectors closed higher. Utilities led, gaining 1.95%. Materials lagged, falling 1.02%.
Commodities: Crude Oil futures fell 0.56% to $52.91 per barrel. Gold futures moved higher by 0.58% to $1,855 per ounce.
Currencies: The US Dollar Index rose 0.27%.
Interest Rates: The 10-year US Treasury yield fell to 1.087%.
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 Mike Zaccardi (@MikeZaccardi). Yesterday, we discussed why a sharp move higher the US Dollar is one of the biggest potential risks to Stocks in the near-term. Today we have a weekly candlestick chart of the US Dollar Index over the past 20-years. Mike points out that we're approaching an important level around $88.50. As you can see, this level has acted as a key inflection point several times over the past decade+. If the Dollar is ever going to mean revert higher, this would be a logical level to see that happen. If the Dollar slices below this level instead, it would likely be a bullish development for Stocks and other risk assets. Either way, the Dollar looks like it's about to give us some valuable macro information. So, it would probably be wise to keep an eye on how it behaves around this level over the next few weeks.
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Quote of the Day
"History shows us, over and over, that bull markets can go well beyond rational valuation levels as long as the outlook for future earnings is positive."
– Peter Bernstein
Top Links
The Stealth Correction - All Star Charts
Many are patiently waiting for the market to correct, but JC Parets points out that some of the largest Stocks in the market have been correcting under the surface for months now.
Frank Cappelleri: Bullish Patterns Persist as SPX Pauses - TD Ameritrade Network
Frank Cappelleri of Instinet offers his technical perspective on the S&P 500, Bonds, and the US Dollar.
3 Big Market Surprises in 2021 - CNBC
Chris Verrone of Strategas Research outlines three potential market risks to keep an eye on.
The Dow's Return By Day of the Month - Crossing Wall Street
Eddy Elfenbein breaks down the Dow's performance during each day of the month. He found that the first six days of each month tend to be exceptionally strong.
Bitcoin is Unlike Any Other Bubble We've Seen So Far - BNN Bloomberg
Here's an interesting take on Bitcoin's price action over the past decade.
