Chart of the Day - Friday, January 15th, 2021

Today’s Chart of the Day was shared on Twitter by Drew Wells (@DrewTheCharts). It's a ratio chart of Micro-Caps vs. Quality stocks ($IWC/$QUAL). This is ratio serves as a good measure of risk-appetite for the broader market. The Micro-Cap ETF is comprised of small, speculative companies like $FCEL, $APPS, and $NTLA. While the Quality ETF is made up of large, well-established companies like $AAPL, $MSFT, and $NKE. When this ratio is rising, it means the speculative names are outperforming the more blue-chip names. In a comment to The Chart Report, Drew said, "Many of these risk-on/risk-off ratios are telling the same story right now. And that story is that investors continue to be comfortable taking risks in this environment. Until that changes, why fight the trend?"