Daily Chart Report ? Wednesday, January 27th, 2021
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Today’s Summary
Wednesday, January 27th, 2021
Indices: US Stocks suffered their worst day nearly three months with the Dow Jones Industrial Average falling 634 points or 2.05%. The S&P 500 and Nasdaq dropped 2.57% and 2.61%, respectively. The Russell 2000 outperformed but still closed lower by 1.91%.
Sectors: All 11 sectors closed lower. Real Estate led, but still fell 1.28%. Communications lagged, dropping 3.23%.
Commodities: Crude Oil futures rose 0.46% to $52.85 per barrel. Gold futures slipped 0.32% to $1,8545 per ounce.
Currencies: The US Dollar Index gained 0.48%.
Interest Rates: The 10-year US Treasury yield fell to 1.023%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by David Rath (@DJwrath). It’s a daily candlestick chart of the US Dollar Index ($DXY) over the past six months. We may sound like a broken record here, but the Dollar continues to be one of the most important charts to watch right now. A potential move higher would likely put pressure on Stocks and other risk assets including Commodities, and even Cryptocurrencies. David points out that the Dollar has been pinched between the 20 and 50-day moving average over the past few days. The longer-term trend is still lower, but a countertrend move is not out of the question. If we do see the Dollar mean revert higher in the near term, it would probably set a risk-off tone to the market.
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Quote of the Day
“The Gamestop thing is a reminder that investing is not the study of finance. It’s the study of how people behave with money, and sometimes those behaviors are incredible.”
– Morgan Housel
Top Links
How Stocks Perform in a President’s First Year – LPL Financial Research
LPL Financial Research looks at how the S&P 500 tends to perform in the first year of the Presidential Cycle.
January Indicator Trifecta Update – Almanac Trader
Jeff Hirsch reviews three seasonality indicators – the Santa Claus Rally, the First Five Days, and the January Barometer.
Strategas’ Verrone on the Difference Between Recent Short Squeezes and 1999 Bubble – CNBC
In this clip, Chris Verrone shares his perspective on the short squeezes going on right now.
There Will Always Be Change – Marea Market Musings
Dan Russo highlights some big-picture trends that are in play.
China Deep Dive – All Star Charts
Steve Strazza examines the recent strength in Chinese stocks.
Top Tweets
