Thursday, February 4th, 2021
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average advancing 332 points or 1.08%. The S&P 500 and Nasdaq both closed at record highs, gaining 1.08% and 1.23%, respectively. The Russell 2000 outperformed, rising 1.98% to an all-time high.
Sectors: 10 of the 11 sectors closed higher. Financials led, gaining 2.22%. Materials lagged, slipping 0.36%.
Commodities: Crude Oil futures moved higher for the fourth consecutive day, rising 1.38% to $56.46 per barrel. Gold futures dropped 2.39% at $1,791 per ounce.
Currencies: The US Dollar Index gained 0.39%.
Interest Rates: The 10-year US Treasury yield moved slightly lower to 1.134%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Technology vs. S&P 500
New relative highs. pic.twitter.com/St8rGHND4Y
— Adaptiv (@adaptiv) February 4, 2021
Today’s Chart of the Day was shared on Twitter by Adaptiv (@adaptiv). It’s a ratio chart of the Technology ETF, $IYW, vs. the S&P 500. The top holdings in $IYW include Apple, Microsoft, Google, Facebook, and NVIDIA. Tech is beginning to reassert its leadership. This is a bullish development for the broader market considering Tech is the largest sector of the S&P 500, representing more than 20% of the index. In a separate comment, Ian McMillan of Adaptiv said, “So, the most important sector for US stocks is breaking to fresh relative highs, and you want me to believe we are in store for a 3rd bear market in 3 years? I’m not so sure about that.”
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Quote of the Day
“The only thing I do know is that from chaos comes opportunity.”
– Dan Loeb
Shorts Have Left The Market – SentimenTrader
Jason Goepfert points out that short interest on the average stock is at a 17-year low.
What History Can Tell Us About The S&P 500 in February and This Year: LPL Financial – CNBC
In this clip, Ryan Detrick shares his take on seasonality and the January Barometer.
Over a Quarter Eyeing a Correction – Bespoke
Bespoke breaks down the results of the latest sentiment surveys.
Dow Theory Has Equities on Breakdown Watch – See It Market
David Keller checks-up on Dow Theory.
Post-Election Februarys Have Been Even More Troublesome – Almanac Trader
Jeff Hirsch points out that post-election Februarys have a disappointing track record.
If we close right now, it’d be the S&P 500’s strongest 4-day rally to close at a record since December 2014 (and before that, March 2000).
This market just won’t stop 💪🏻
— Callie Cox (@callieabost) February 4, 2021
— The Vol Plateau (@VolatilityWiz) February 4, 2021
— Urban Carmel (@ukarlewitz) February 4, 2021
While breadth has generally been decent, Tech $XLK has not been as big of a "source of funds" as we would have expected. The leadership has stalled, but it's still on the cusp of an EW relative high. pic.twitter.com/WL83e25qdN
— RenMac: Renaissance Macro Research (@RenMacLLC) February 4, 2021
Indices in general looked bearish into close on Friday, including my own indicators.. but 2020/2021 has been the year of "Breadth"…. in both directions. Friday saw a "negative" Zweig breadth thrust, which has accurately marked bottoms since March 2020 $SPY pic.twitter.com/cLoj2ysNI7
— Rolando Santos (@TKPTrader) February 4, 2021
1960s flashback: Overlaying today’s market to the “Glamour Stock” 1960s, see how the #SP500 of 2020 mirrors the tape from the late 1960s, from sell-offs to bull run? If this analog holds, we are only in 1967 somewhere with another year to go. pic.twitter.com/SheoIHRR9n
— Jurrien Timmer (@TimmerFidelity) February 4, 2021
— KKern, TTB (@kkernttb) February 4, 2021
— Dan Russo, CMT (@DanRusso_CMT) February 4, 2021
— Carter Braxton Worth (@CarterBWorth) February 4, 2021
— jeroen blokland (@jsblokland) February 4, 2021
In the case of GameStop, the "little guy" was left holding the bag while their "partners" (the billionaires and media celebrities who egged them on) got away scot-free.
— Charlie Bilello (@charliebilello) February 4, 2021