Daily Chart Report ? Thursday, March 11th, 2021

Today’s Summary
Thursday, March 11th, 2021

Indices: US Stocks closed higher in today's session with the Dow Jones Industrial Average gaining 189 points or 0.58%. The S&P 500 rose 1.04% and closed at a fresh all-time high. The Nasdaq outperformed, closing up 2.52%. The Russell 2000 moved higher by 2.31%.

Sectors: 8 of the 11 sectors closed higher. Technology led, rising 2.14%. Financials lagged, slipping 0.29%.

Commodities: Crude Oil futures moved higher by 2.45% to $66.02 per barrel. Gold futures were unchanged and continue to trade at $1,722 per ounce.

Currencies: The US Dollar Index dropped 0.44%.

Interest Rates: The 10-year US Treasury yield rose to 1.542%.

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 Michael Santoli (@michaelsantoli). It's a chart of the NAAIM Exposure Index over the past two years. This index is based on a survey in which active fund managers are asked their exposure to the stock market. Like most sentiment indicators, it is used as a contrarian indicator. Generally speaking, levels over 80% indicate excessive optimism, while levels under 20% indicate excessive pessimism. The S&P 500 pulled back a mild  5% in recent weeks, and yet this sentiment indicator plunged to a 10-month low. Leading up to the pullback, there was a lot of concern over excessive optimism. But as Michael points out, it looks like the pullback did a lot to dampen optimism and reset sentiment. Now that the S&P 500 has returned to all-time highs, the bulls can sleep a little easier knowing that the market is not as frothy as it was prior to the pullback. We shared this quote from Robert Shiller a few days ago but it seems particularly applicable here - "After a stock market decline, people may perceive more risk than before when, in fact, the decline may have taken some of the risk out of the market. ”

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Quote of the Day

"Sustained trends have a way of covering all kinds of mistakes and bad habits. In fact, strong and persistent trends can become the breeding grounds for habits that will eventually prove quite costly to traders."

– Peter Brandt