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Today’s Summary
Thursday, January 28th, 2021
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 300 points or 0.99%. The S&P 500 and Nasdaq rose 0.98% and 0.50%, respectively. The Russell 2000 underperformed, inching lower by 0.10%.
Sectors: All 11 sectors closed higher. Financials led, rising 1.86%. Real Estate lagged but still inched higher by 0.27%.
Commodities: Crude Oil futures fell 0.96% to $52.34 per barrel. Gold futures slipped 0.20% to $1,841 per ounce.
Currencies: The US Dollar Index inched lower by 0.12%.
Interest Rates: The 10-year US Treasury yield rose to 1.048%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
This chart will be in history books. pic.twitter.com/Ru9BNjijdU
— TradingView (@tradingview) January 28, 2021
Today’s Chart of the Day was shared on Twitter by TradingView (@tradingview). It’s a daily candlestick chart of GameStop ($GME) over the past couple of months. In case you’ve been living under a rock, shares of GameStop have experienced a massive short squeeze over the past few sessions. With the whole world fixed on this stock, we thought it would be a good time to remind you that there are literally thousands of other stocks in the market. It might seem like an easy way to double your money in a day, but it’s also an easy way to blow up your account. Especially if you’re not an experienced trader. Short squeezes like this can be violent and are often associated with volatility in both directions. In terms of where this thing is headed, we’ll leave you with this timeless quote from the legendary technician, Bob Farrell, “parabolic advances usually carry further than you think, but they do not correct by going sideways.”
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Quote of the Day
“If you don’t follow the stock market, you are missing some amazing drama.”
– Mark Cuban
Top Links
Hedge Funds Lose $30 Billion on VW Infinity Squeeze – MOX Reports
With short squeezes on everyone’s mind, here’s a must-read story about the mother of all short squeezes that took place on shares of Volkswagon in 2008.
Will GameStop Stop The Bull Market? – LPL Financial Research
The team at LPL Financial Research weighs-in on the GameStop short squeeze and what it means for the broader market.
Breadth Divergence Warns of Stock Market Top – See It Market
David Keller points out that breadth and price have begun to diverge negatively.
Has Transportation (IYT) Confirmed a Warning Sign? – StockCharts.com
Mish Schneider examines the recent weakness in the Dow Jones Transportation Average.
U.S. Dollar Collapse Point? Biggest Test in a Decade in Play! – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the US Dollar Index.
Top Tweets
Retail is afraid of a bubble (both AAII and CNN fear/greed index are net bearish now). Meanwhile, large-cap stocks are making fresh multi-month breakouts. The stage is set. $SPY $QQQ pic.twitter.com/QQI63gvwo4
— Brian G (@alphacharts) January 28, 2021
this does not scream euphoria among retail investors. to me it seems like the complete opposite of that… pic.twitter.com/9E7Ly6LCPW
— J.C. Parets (@allstarcharts) January 28, 2021
VIX surged 61.6% yesterday, outpacing worst days of bear market plunge last year & highest since short vol implosion in early 2018
[Past performance is no guarantee of future results] pic.twitter.com/dvLi7gApQG— Liz Ann Sonders (@LizAnnSonders) January 28, 2021
Chart Of The Day: In case this was lost on folks, yesterday's Total Volume on the Nasdaq eclipsed the previous daily record…by 50%!! $COMPQ $QQQ pic.twitter.com/BYAeCbLw2K
— Dana Lyons (@JLyonsFundMgmt) January 28, 2021
The last record for U.S. trading volume was during the financial crisis. Yesterday shattered that record. pic.twitter.com/fn1dczbHJC
— Dani Burger (@daniburgz) January 28, 2021
Processing all of the downturns from yesterday and three of the most disturbing are semiconductors, homebuilders and railroads. Still early stage but does not suggest optimism here. $SMH $ITB $IYT pic.twitter.com/PpQLGRduEh
— David Keller, CMT (@DKellerCMT) January 28, 2021
Meanwhile, $AAPL successfully testing crucial support level as everyone runs around with their hair on fire. pic.twitter.com/SlseE9WsMa
— Matt ?, CMT (@topstockcharts) January 28, 2021
Was noted earlier $GME at its high was the biggest stock in the small-cap Russell 2000.
More fun : It's by far the biggest weight in the micro-cap $IWC ETF, which holds the tiniest R2K names.
Cult mo-mo names GME, FCEL, APPS, MGNI = 8% of a 1,275-stock ETF. "Diversification." pic.twitter.com/B5QXFjpmRA
— Michael Santoli (@michaelsantoli) January 28, 2021
Remember the shipping stock squeeze in 2016? In percentage terms, it was nearly as big as GME. https://t.co/rQa6AfLJzK pic.twitter.com/Z6dXgcPVJ0
— Bespoke (@bespokeinvest) January 28, 2021
GameStop shares on a log scale still look nuts. pic.twitter.com/CY1qItgYcG
— Tracy Alloway (@tracyalloway) January 28, 2021