Daily Chart Report ? Wednesday, February 24th, 2021
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Today’s Summary
Wednesday, February 24th, 2021
Indices: US Stocks closed higher in today's session. The Dow Jones Industrial Average advanced 425 points or 1.35% to an all-time high. The S&P 500 and Nasdaq rose 1.14% and 0.99%, respectively. The Russell 2000 outperformed, gaining 2.38%.
Sectors: 9 of the 11 sectors closed higher. Energy led for the third straight day, gaining 3.54%. Utilities lagged, falling 1.17%.
Commodities: Crude Oil futures moved higher by 2.51% to a new 52-week high of $63.22 per barrel. Gold slipped 0.44% to $1,798 per ounce.
Currencies: The US Dollar Index inched lower by 0.12%.
Interest Rates: The 10-year US Treasury yield rose to 1.384%.
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 Ed Clissold of Ned Davis Research (@edclissold). The chart shows two Growth/Value ratios - Large-Cap Growth/Value (top) and Small-Cap Growth/Value (bottom). Yesterday, we highlighted the sharp rotation out of Growth and into Value that we've seen this week. Ed points out that these ratios are currently testing a well-defined support level. Growth has trounced Value for the majority of the past decade, but that trend is at a make-or-break moment. We've seen these ratios test support three times in the past six months. Each time, it sparks speculation over a potential long-term trend change in favor of Value, but that has yet to come to fruition. If these ratios finally breakdown at this key support level, we could see a much more dramatic and sustained shift towards Value. For more on this, check out the full thread here.
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Quote of the Day
“Perhaps the biggest source of market inefficiency remains the human being. As groups, we repeatedly veer to extremes in our optimism or pessimism, leaving mispriced securities in our wake.”
– Michael Mauboussin
Top Links
Buy The Dip - The Irrelevant Investor
Michael Batnick shares some stats relating to yesterday's sharp intraday reversal.
A Relative Report - Jotting on Charts
Grant Hawkridge highlights some important ratio charts.
Financials vs. Technology Stocks - Which Sector Leads? - See it Market
David Keller offers his thoughts on two of the most important sectors right now - Financials and Technology.
From Weak Hands To Strong Hands? - Marea Market Musings
Dan Russo weighs-in on this week's price action and rising interest rates.
New Highs Picking Back Up Thanks To Cyclicals - Bespoke
Bespoke takes a look at the recent strength from cyclical sectors.
Top Tweets
