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Today’s Summary
Friday, January 15th, 2021
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average slipping 177 points or 0.57%. The S&P 500 and Nasdaq fell 0.72% and 0.87%, respectively. The Russell 2000 underperformed, dropping 1.49%.
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining 1.54%. Energy lagged, dropping 3.89%.
Commodities: Crude Oil futures fell 2.69% to $52.13 per barrel. Gold futures dropped 1.28% to $1,828 per ounce.
Currencies: The US Dollar Index moved higher by 0.61%.
Interest Rates: The 10-year US Treasury yield fell to 1.087%.
** The Stock Market & Bond Market will both be closed on Monday, January 18th, in observance of Martin Luther King Jr. Day **
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
One of my fav market risk measures. Microcap stocks continue to smash those old levels vs Quality stocks, and there's quite a bit of room to the next speed bump around the 1.30 area $IWC $QUAL pic.twitter.com/Yd3b2qOFJ8
— Drew Wells, CMT, CIMA® (@DrewTheCharts) January 15, 2021
Today’s Chart of the Day was shared on Twitter by Drew Wells (@DrewTheCharts). It’s a ratio chart of Micro-Caps vs. Quality stocks ($IWC/$QUAL). This is ratio serves as a good measure of risk-appetite for the broader market. The Micro-Cap ETF is comprised of small, speculative companies like $FCEL, $APPS, and $NTLA. While the Quality ETF is made up of large, well-established companies like $AAPL, $MSFT, and $NKE. When this ratio is rising, it means the speculative names are outperforming the more blue-chip names. In a comment to The Chart Report, Drew said, “Many of these risk-on/risk-off ratios are telling the same story right now. And that story is that investors continue to be comfortable taking risks in this environment. Until that changes, why fight the trend?”
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Quote of the Day
“We are not makers of history. We are made by history.”
– Martin Luther King Jr.
Top Links
Martin Luther King Jr. Holiday Week Trading: Leans Bearish -Almanac Trader
Seasonality expert, Jeff Hirsch points out that stocks have historically seen some mid-month weakness in January.
What Concerns Me? – All Star Charts
JC Parets lays out some of the potential risks that are on the table in Q1.
Stock Market & Bitcoin Analysis January 15, 2021 – AlphaTrends
Brian Shanon reviews this week’s price action and lays out some levels of interest to keep an eye on.
Doc Copper Suggesting Economic Growth Peaks Here? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Copper.
Where Do We (Investors) Stand – David Cox
In this quick video, David Cox highlights a few technical developments to be aware of right now.
Top Tweets
$SPX stopped at a Fib extension pic.twitter.com/vaC7A698R1
— BostonCharts (@bostonchaahhts) January 15, 2021
For those who need a sleep aid, a picture of the S&P 500 so far this year. Not a lot happening at the big-cap index level.
Could make the case for benign respite or emerging fatigue. Or the first with a chance it develops into the second. pic.twitter.com/7m7ReeUhXs
— Michael Santoli (@michaelsantoli) January 15, 2021
One for the Weekend: coming into today, all 50 markets that make up the MSCI ACWI were trading above their 50-day averages. Can't get any stronger than that & sentiment concerns are diminished when rally participation remains broad. pic.twitter.com/Vmg7SQKC3r
— Willie Delwiche (@WillieDelwiche) January 15, 2021
Apart from a very brief period early December, the #VIX Index has not traded below 20 since the global outbreak of the Covid-19 virus. pic.twitter.com/KUr9IRlbmQ
— jeroen blokland (@jsblokland) January 15, 2021
Shot: penny stock volume is exploding. pic.twitter.com/1ZxZALkE4L
— Callie Cox (@callieabost) January 15, 2021
The financials vs. technology ratio has been favoring tech for years. Was September 2020 the bottom for this ratio?……… $XLF $XLK pic.twitter.com/mc8vPI6p6z
— David Keller, CMT (@DKellerCMT) January 15, 2021
Pot stocks make back-to-back new 52-week highs for the first time in years $MJ pic.twitter.com/hpQQWOSrcu
— Steven Strazza (@sstrazza) January 15, 2021
CRB Commodity Index up huge since March.. cracking through the 2016-2019 low range.. pic.twitter.com/90EvhwXzNe
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 15, 2021
$ETH.X Place your bet… $ETHE $GBTC pic.twitter.com/xRBceCLmg9
— Greg Rieben (@gregrieben) January 15, 2021
Happy Friday!! pic.twitter.com/85KxrAzP4f
— Stocktwits (@Stocktwits) January 15, 2021