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Today’s Summary
Friday, January 29th, 2021
Indices: US Stocks ended the week/month on a sour note in today’s session, with the Dow Jones Industrial Average dropping 621 points or 2.03%. The S&P 500 and Nasdaq fell 1.93% and 2.00%, respectively. The Russell 2000 outperformed but closed lower by 1.57%.
Sectors: All 11 sectors closed lower. Utilities led, but still fell 0.54%. Energy lagged dropping 3.32%.
Commodities: Crude Oil futures slipped 0.38% to $52.14 per barrel. Gold futures rose 0.49% to $1,850 per ounce.
Currencies: The US Dollar Index inched higher by 0.09%.
Interest Rates: The 10-year US Treasury yield rose to 1.069%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The way I learned it was "As goes January, so goes the rest of the year". Mirite? @AlmanacTrader pic.twitter.com/NPNhe5z6t2
— J.C. Parets (@allstarcharts) January 29, 2021
Today’s Chart of the Day was shared on Twitter by JC Parets (@allstarcharts). January is officially in the books! Unfortunately for the bulls, both the S&P 500 and Dow closed negative on the month by 1.22% and 2.10%, respectively. The January Barometer that JC brings up is a seasonality indicator popularized by Yale Hirsch of the Stock Traders Almanac in 1972. The indicator is pretty straight forward. It states that as the S&P 500 goes in January, so goes the rest of the year. This may seem overly simplistic, but it has an impressive track record. Since 1950, there have only been 11 errors, giving the January Barometer an 84% accuracy ratio.
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Quote of the Day
“Live as if you were to die tomorrow.
Learn as if you were to live forever.”
– Mahatma Gandhi
Top Links
Weekly Market Performance – Markets Pullback This Week – LPL Financial Research
The team at LPL Financial Research recaps this week’s price action.
Stocks Could See a Near-Term Pullback on Loss of Momentum, Strategist Says – CNBC
In this clip, Katie Stockton of Fairlead Strategies shares her technical outlook on stocks.
Where Do We (Investors) Stand – David Cox
David Cox highlights some noteworthy technical developments.
Most Heavily Shorted Stocks at the End of 2020 and Now – Bespoke
Bespoke takes a look at short interest in Russell 3000 stocks.
Stock Market Video Analysis – AlphaTrends.Net
Brian Shannon reviews this week’s price action and lays out some levels of interest to keep an eye on next week.
Top Tweets
January 2021?$SPY Down$TLT Down$GLD Down
Happy New Year!
— Steve Deppe, CMT (@SJD10304) January 29, 2021
The sneaky sector rotation has the $SPX testing its 50 DMA pic.twitter.com/ZXWzfSi2yE
— Abigail Doolittle (@TheChartress) January 29, 2021
$SPX We are having a correction 3-4%-ish so far but coming into support. Is this the beginning of something worse. Could be. Breadth is deteriorating. If this chart breaks down, it will be something worse. pic.twitter.com/32iy89xAXd
— Alan Cohen (@al_xdpg) January 29, 2021
Market has been rallying on successively lower 52-week highs in the $SPX. One of the many negative breadth divergences in recent days and weeks… pic.twitter.com/PtzmjjrMZe
— David Keller, CMT (@DKellerCMT) January 29, 2021
Concerning broader Market, I mentioned Breadth looked weak recently and bought $VXX Hedge… another good Marker of Breath is % of stocks above 50 day, clear divergence here. No idea how far we correct, but placing protection makes sense $SPY pic.twitter.com/BeXWBdwUIr
— Rolando “Penny Stock” Santos? (@TKPTrader) January 29, 2021
$QQQ Big test here for big tech but no one cares. Too busy watching $GME $AMC show. pic.twitter.com/yIYPYMZpsH
— Greg Rieben (@gregrieben) January 29, 2021
It’s unlikely, “given the parabolic blow-offs in so many names, that the overall market remains unscathed. We remain cautious on semi’s.. and given the negative reaction from $AAPL and $FB.. we think risk/reward in the mega-caps is becoming less favorable..” @jkrinskypga pic.twitter.com/rosJ0lQd7r
— Carl Quintanilla (@carlquintanilla) January 29, 2021
Energy was the best performing sector in the S&P 500 this month. $SPX pic.twitter.com/gOwJJjL6Jl
— MicroSectors (@msectors) January 29, 2021
This is definitely a chart that caught my attention today.
Stocks vs Bonds ratio back in its 2018 highs, which also represents 161.8% extension of 2007-2009 decline. Last time we were here stocks peaked globally and started to fall.$SPY vs $TLT pic.twitter.com/LLDCBzY4wm
— R. Alfonso Depablos (@AlfCharts) January 29, 2021
$DXY US Dollar Index – Monthly pic.twitter.com/8kxjpqCPCt
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) January 29, 2021
Lumber prices hit another record high, more than doubling over the last year.
Federal Reserve at their meeting this week: "we need much higher inflation to help the little guy during these difficult times and will keep rates at 0% and buying bonds like mad until we get there." pic.twitter.com/fZDIKHogMa
— Charlie Bilello (@charliebilello) January 29, 2021
When I was a kid all I had was ‘pong’ and ‘pinball’ https://t.co/cP26M9RemA
— Tiny Bubbles… (@howardlindzon) January 29, 2021