Thursday, February 11th, 2021
Indices: US Stocks closed slightly higher in today’s session. The Dow Jones Industrial Average was flat (7 points or 0.02%). The S&P 500 and Nasdaq rose 0.17% and 0.38%, respectively. The Russell 2000 inched higher by 0.13%.
Sectors: 4 of the 11 sectors closed higher. Consumer Discretionary led, rising 1.10%. Energy lagged, falling 1.54%.
Commodities: Crude Oil futures snapped an eight-day winning streak, falling 1.31% to $57.91 per barrel. Gold futures dropped 0.93% to $1,826 per ounce.
Currencies: The US Dollar Index was flat (0.02%).
Interest Rates: The 10-year US Treasury yield moved higher to 1.1268%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
If the Russell 2000 experiences a full on 10% correction, it will still only be at its lowest levels since… 10 days ago.
— stef (@scheplick) February 11, 2021
Today’s Chart of the Day was shared on Twitter by Stefan Cheplick (@scheplick). It’s a daily candlestick chart of the Russell 2000 over the past ten months. The Russell 2000 has made a remarkable comeback. Just a few months ago, the Russell was considerably lagging the other major indices and hadn’t made a new high in years. It was essentially the redheaded stepchild of stock market indices, but it has quickly transformed into the market’s new leading index. It’s currently up 15% year-to-date, which is more than 3x the S&P 500’s performance and 5x the Dow’s performance over the same period. It’s even outperforming the S&P 500 on a 1, 3, and 5-year basis now as well. Stefan points out that a 10% correction from here would bring us back to levels seen just ten days ago. Taking it a step further, a 20% bear market drop would take us back to the levels we were at in early-December, which is still comfortably above the former highs.
Quote of the Day
“When everyone’s waiting for a pullback to buy either you don’t get a pullback or, if you do, you shouldn’t buy into it.”
– Bob Farrell
Valuations Don’t Tell You Anything About Stocks – CNBC
Here’s a must-watch clip in which Josh Brown weighs-in on valuations.
The US Dollar & Emerging Markets – Michael Roberts Associates
Shane Murphy analyzes the relationship between the US Dollar and Emerging Markets.
Persistent Moves to New Highs Rarely End Abruptly – Quantifiable Edges
Rob Hanna explains that strength often begets more strength.
Bull-Bear Spread Spiking – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Trading Before Presidents’ Day Weekend Mixed, However Nice Improvement Last 10 Years – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how Stocks have historically performed going into Presidents’ Day weekend.
The stock gods heard your cries for a selloff, so they’re tossing you a hearty 0.4% drop this week 🙃
If the market closed right now, it’d be the S&P 500’s smallest 3-day losing streak since July 2017.
— Callie Cox (@callieabost) February 11, 2021
If things seem boring, that's because they are.
The S&P 500 has closed within 0.2% of the previous day's close 3 consecutive days.
Haven't seen than in 15 months (November 2019).
What is that thing they say about shorting a dull market?
— Ryan Detrick, CMT (@RyanDetrick) February 11, 2021
For the 7th time since 1990, the NYSE has had 8 consecutive positive closes. The record is 11 days, set in May 1990. pic.twitter.com/E7dKSMFLMI
— Andrew Thrasher, CMT (@AndrewThrasher) February 11, 2021
Today's almost-unbelievable fact, courtesy of @MichaelBatnick:
The Russell 2000 $RUT has outperformed the S&P500 $SPX over the last 1, 3, and 5 years – so much for big multinationals being the only stocks to thrive through the pandemic! pic.twitter.com/H5SNlbthT1
— Matt Weller CFA, CMT (@MWellerFX) February 11, 2021
FUNDSTRAT: Sentiment has collapsed since January even though stocks continue to hit record highs. pic.twitter.com/sMEfjswvGO
— Matt 🦊, CMT (@topstockcharts) February 11, 2021
Stocks have beat out bonds by ~9.3 percentage points so far this year, the biggest outperformance since 2013 — h/t @bespokeinvest https://t.co/h1DoBzecWM via @markets w/ @VildanaHajric pic.twitter.com/3cKkeVBZZN
— Katie Greifeld (@kgreifeld) February 11, 2021
John Roque of Wolfe Research pointing out the Brobdinagian Base ….in Dhi, Len, Phm, Kbh pic.twitter.com/y8cNwj8qqJ
— Roy Mattox (@RoyLMattox) February 11, 2021
Semiconductors at all-time highs and heavily outpacing the rest of the market is…
— Grayson Roze (@GraysonRoze) February 11, 2021
— Kevin Firari (@KevinFirari) February 11, 2021
— Carl Quintanilla (@carlquintanilla) February 11, 2021