Daily Chart Report 📈 Monday, January 22, 2024
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Today’s Summary
Monday, January 22, 2024
Indices: Russell 2000 +2.01% | Dow +0.36% | S&P500 +0.22% | Nasdaq 100 +0.09%
Sectors: 8 of the 11 sectors closed higher. Industrials led, gaining +0.77%. Utilities lagged, falling -0.51%.
Commodities: Crude Oil futures rose +2.06% to $74.76 per barrel. Gold futures fell -0.35% to $2,022 per oz.
Currencies: The US Dollar Index rose +0.12% to $103.36.
Crypto: Bitcoin dropped -4.89% to $39,528. Ethereum dropped -5.91% to $2,311.
Volatility: The Volatility Index fell -0.98% to 13.18.
Interest Rates: The US 10-year Treasury yield fell to 4.109%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
🏆 Today’s Chart of the Day was shared by Charlie Bilello (@CharlieBilello).
- While the S&P 500 reached all-time highs last week, The Russell 2000 closed in bear market territory (-20.4%).
- The Russell 2000 has never experienced such a severe drawdown while the S&P 500 was at a record high. This sounds bearish, but history suggests otherwise.
- Looking at the three prior extremes, Charlie points out that both indices were higher over the next year, with the Russell 2000 outperforming the S&P 500 and joining it at all-time highs. The following stats were included:
- 1.) April 7, 1999 (-19.2% R2k Drawdown): S&P 500 gained 14.3% over the next year and R2k gained 36.5%.
- 2.) February 13, 1991 (-13.5% R2k Drawdown): S&P 500 gained 12.1% over the next year and R2k gained 35.5%.
- 3.) January 21, 1985 (-13.3% R2k Drawdown): S&P 500 gained 17.4% over the next year and R2k gained 18.2%.
The takeaway: The wide disparity between the Russell 2000 and the S&P 500 might seem unhealthy, but history suggests it’s not bearish.
Quote of the Day
“The more I see, the less I know for sure.”
– John Lennon
Top Links
A Lot of Debate For 10 Basis Points – Bespoke
Bespoke highlights the disparity between Small-Caps and Large-Caps.
February 2024 Almanac: Second Worst S&P 500 Month Since 1950 – Almanac Trader
Jeff Hirsch looks at how stocks have historically performed in February.
Understanding and Utilizing the Ulcer Index in Investment Strategies – John Rothe
John Rothe examines a risk measure known as the Ulcer Index.
The Market is in the Midst of an ‘Unconfirmed Breakout’, Says Fairlead Strategies’ Katie Stockton – CNBC
Katie Stockton shares her technical perspective on the breakout in the S&P 500.
Two Years in the Making – The Weekly Trend Podcast
Ian McMillan and David Zarling discuss some of the most noteworthy technical developments in this podcast.
Top Tweets
You’re all caught up now. Thanks for reading!