Daily Chart Report ? Monday, February 1st, 2021
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Today’s Summary
Monday, February 1st, 2021
Indices: US Stocks kicked off the week/month on a positive note, with the Dow Jones Industrial Average advancing 229 points or 0.76%. The S&P 500 and Nasdaq rose 1.61% and 2.55%, respectively. The Russell 2000 closed higher by 2.53%.
Sectors: All 11 sectors closed higher. Consumer Discretionary led, gaining 2.60%. Consumer Staples lagged but still managed to close slightly positive by 0.09%.
Commodities: Crude Oil futures moved higher by 2.57% to $53.54 per barrel. Gold futures rose 0.73% to $1,864 per ounce.
Currencies: The US Dollar Index gained 0.48%.
Interest Rates: The 10-year US Treasury yield rose to 1.096%.
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 @Moritz_of_Hesse. The top chart comes from Morgan Stanley Prime Brokerage. It essentially shows the degree to which hedge funds reduced leverage/risk by covering their short positions and selling some of their longs. As you can see, hedge funds de-grossed in a big way last week. This sort of extreme de-grossing has often marked bottoms in the S&P 500. In a comment to The Chart Report, Moritz said, "Last week was a 7 sigma event, in terms of de-grossing. You typically see this during a liquidation event due to systemic risk. In this case, the S&P 500 did not significantly decline, but the end result of the deleveraging (more dry powder on the sidelines) was the same."
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Quote of the Day
“In most bull markets, there comes a time when the public controls fluctuations and the efforts of the largest operators are insufficient to check the rising tide.”
– Charles Dow
Top Links
As Goes January, So Goes The Year - LPL Financial Research
The team at LPL Financial Research weighs-in on the January Barometer.
Squeeze 'Em - The Weekly Trend
David Zarling and Ian McMillan discuss GameStop, the January Barometer, commodities, and more.
Monthly Candlesticks - January 2021 - Alf Charts
Alfonso Depablos breaks down several monthly candlestick charts.
The Short Squeeze That Broke The Market - Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight the strongest stocks, trends, and themes across the markets.
Short Interest & Short Squeezes Explained with CarParts Example - AlphaTrends.net
Brian Shannon gives a brief tutorial on how to identify potential short squeeze opportunities.
Top Tweets
