Daily Chart Report ? Wednesday, August 11th, 2021
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Today’s Summary
Wednesday, August 11th, 2021
Indices: US Stocks were mostly higher in today’s session. The Dow advanced 220 points or 0.62% to an all-time high. The S&P 500 also closed at a record high, rising 0.25%, while the Nasdaq inched lower by 0.16%. The Russell 2000 gained 0.49%.
Sectors: 10 of the 11 sectors closed higher. Materials led, gaining 1.41%. Health Care was the only sector that closed lower, falling 0.99%.
Commodities: Crude Oil futures rose 1.41% to $69.25 per barrel. Gold futures moved higher by 1.25% to $1,753 per ounce.
Currencies: The US Dollar Index slipped 0.19%.
Interest Rates: The 10-year US Treasury yield fell to 1.334%.
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 in a note by Frank Cappelleri of Instinet (@FrankCappelleri). It’s a chart of the 10-year US Treasury yield (red) over the past 14-months and a ratio of the Russell 2000 vs. the Nasdaq 100 (blue). Frank explains that the 10-year yield has been driving a lot of the rotation in the stock market since the March 2020 low. The 10-year yield took a breather today after a 5-day winning streak, and it’s currently sitting in an interesting spot pinched between the 50-day and 200-day moving averages (not shown). This recent rebound in yields has benefited Cyclical/Value areas of the market, most notably the Financials. On the other hand, it has slowed the momentum in Growth/Tech areas of the market. The Russell 2000 has more weighting in the Financials than the Nasdaq, which is highly weighted towards Tech. So, if rates continue to bounce in the near term, we’ll likely see the Russell 2000 outperform the Nasdaq after several months of underperformance. Bull markets thrive on this sort of rotation, but it can be painful if you’re overweight the wrong areas of the market at the wrong time.
Quote of the Day
“The averages are merely the backdrop of the game; the real contests are waged over stocks themselves.”
– Justin Mamis
Top Links
The 10-Year Note is Driving Shifts in Leadership – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Finding Trends in Current Market Environment – TD Ameritrade Network
Willie Delwiche shares his perspective on breadth and global markets.
Cyclical Sector Turnaround – Bespoke
Bespoke takes a look at the recent strength in the cyclical sectors like Financials, Industrials, and Materials.
Base Metals are More Precious to Investors Than Gold or Silver Have Been – BNN Bloomberg
JC Parets points out that Base Metals have been a far better investment than Precious Metals.
A Historic Split Between Haves and Have-Nots on the Nasdaq – SentimenTrader
Jason Goepfert examines the huge spread in breadth between the Nasdaq 100 and the Nasdaq Composite.
Top Tweets
Feed that bull.$TRAN $IYT $SOX pic.twitter.com/BFjbAd7ytV
— J4 (@J4_doji) August 11, 2021
You’re all caught up now. Thanks for reading!