Daily Chart Report ? Tuesday, February 23rd, 2021
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Today’s Summary
Tuesday, February 23rd, 2021
Indices: US Stocks closed mixed after clawing back losses from earlier in the day. The Dow closed flat (16 points or 0.05%). The S&P 500 managed to close positive by 0.13% after being down as much as 1.83% intraday. The Nasdaq slipped 0.50%. The Russell 2000 underperformed, falling 0.88%.
Sectors: 8 of the 11 sectors closed higher. Energy led, gaining 1.65%. Consumer Discretionary lagged, falling 0.66%.
Commodities: Crude Oil futures moved lower by 0.81% to $61.20 per barrel. Gold inched lower by 0.16% to $1,806 per ounce.
Currencies: The US Dollar Index inched higher by 0.12%.
Interest Rates: The 10-year US Treasury yield moved slightly lower to 1.343%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
this is not fear… pic.twitter.com/zpg7OoUQId
— ? I. Vodenitcharov CFA CMT (@iv_technicals) February 23, 2021
Today’s Chart of the Day was shared on Twitter by @iv_technicals. It’s a heat map of the S&P 500 showing today’s % change for each component (as of 1pm EST today). The flavor of the week is Rotation. Over the past two days, we’ve seen a sharp rotation out of high-flying Growth stocks and into Value stocks. This week’s price action might feel like panic, but we tend to think of rotation as a healthy part of bull markets. The reason these rotation days tend to feel so brutal is because Growth areas of the S&P 500 are much larger than Value areas of the market. Yesterday, Christian Fromhertz pointed out that Growth sectors, like Tech, represent 27% of the S&P 500 while Value sectors, like the Energy sector, represent just 3%. If you take a second to inspect this heat map, you’ll clearly see the rotation. Most of the bright red names are large Growth/Tech names while most of the bright green names are smaller Value/Energy names. So far, this pullback might feel like a full-blown risk-off environment, but we’re not exactly seeing a sea of red. At this point, it’s really just rotation doing its thing.
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Quote of the Day
“Today’s headlines and history’s judgment are rarely the same.”
– Condoleezza Rice
Top Links
Credit Is Fine. Buy Stocks. – All Star Charts
JC Parets explains that the credit markets are giving stocks the green light.
The Soft Commodities Make a Big Move – StockCharts
Mish Schnieder weighs-in on the breakout in soft commodities.
Are Large-Cap Tech Stocks In Big Trouble? – Kimble Charting Solutions
Chris Kimble examines the outlook for Large-Cap Tech stocks.
Post-Election Year March: Performance Slips to Bottom Half – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how stocks have historically performed in March.
Bitcoin’s Largest Drawdown Since Last Month – Bespoke
Bespoke takes a look at Bitcoin’s recent sell-off.
Top Tweets
Dont u dare pic.twitter.com/SbONjnwFt9
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 22, 2021
