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Today’s Summary
Monday, March 1st, 2021
Indices: US Stocks kicked off the week/month on a positive note, with the Dow Jones Industrial Average rising 603 points or 1.95%. The S&P 500 had its best day in more than six months, gaining 2.38%. The Nasdaq jumped 3.01%. The Russell 2000 outperformed, climbing 3.23%.
Sectors: All 11 sectors closed higher. Technology led, gaining 3.22%. Real Estate lagged, but still inched higher by 0.11%.
Commodities: Crude Oil futures dropped 2.11% to $60.20 per barrel. Gold slipped 0.33% to $1,723 per ounce.
Currencies: The US Dollar Index rose 0.16%.
Interest Rates: The 10-year US Treasury yield inched higher to 1.424%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day comes from EquityClock.com. It’s a seasonal composite of the S&P 500 compiling data from the past 20-years. The S&P 500 has been positive in March 55% of the time over the past two decades for an average gain of 0.5%. The beginning of the month tends to start off weak, but things start to look-up in the back half of the month. In terms of rank, March has been the sixth-best month. While the sixth-best month is nothing impressive, the bulls can look forward to the fact that April has been the strongest month over the past two decades. As we know, the market doesn’t always follow its seasonal path. However, seasonality does provide some valuable context, and it’s something we want to keep in the back of our minds as we kick off the new month.
Quote of the Day
“It’s not what you know that will make you a successful investor;
it’s what you do.”
– Liz Ann Sonders
Top Links
February Market Insights – Energy and Financials Fuel February’s Markets – LPL Financial Research
The team at LPL Financial Research outline some of the key takeaways from February’s price action.
Monthly Candlesticks – February 2021 – Alf Charts
Alfonso Depablos reviews some monthly candlestick charts.
Rotation Station – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss the most significant technical developments on their radar.
A World of Financial Implications – All Star Charts
Steve Strazza takes a look at some potential trend changes brewing under the surface.
The Market is in a Pullback Mode – Momentum Monday
Howard Lindzon, Joe Fahmy, and Ivanhoff highlight some of the hottest stocks, trends, and themes across the market right now.
Top Tweets
Happy Monday!! pic.twitter.com/wtDVZa3mPS
— Stocktwits (@Stocktwits) March 1, 2021
S&P 500 today takes back last week's drop almost to the penny. Tracking to give both sides reason for hope and reason to worry. pic.twitter.com/x30ssvSF1R
— Michael Santoli (@michaelsantoli) March 1, 2021
NYSE A/D Line breaking recent down trend line. Big breadth numbers across the board today $SPY pic.twitter.com/XcDoOL42q2
— Rolando Santos (@TKPTrader) March 1, 2021
The S&P 500 lost 12% last March, for the worst month of March since '39.
Before that drop, it had been one of the better months of the year.
Still, it ranks 6th out of the 12 months since '50 and is off to a nice start so far this time. pic.twitter.com/p8tib3gDqd
— Ryan Detrick, CMT (@RyanDetrick) March 1, 2021
Right now, Mr. Market says "The smaller the better."
Microcaps outperforming Small Caps
Small Caps outperforming Mid Caps
Mid Caps outperforming Large Caps$IWC $SLY $MDY $SPY pic.twitter.com/zMEdDn52Ix— Grayson Roze (@GraysonRoze) March 1, 2021
Why the big picture is critical – especially now:
(1) Three YEARS of non-stop Stock selling.
(2) All the money went into Bonds.
(3) Stocks are just four MONTHS into a new Cyclical recovery.
If the rally continues, *Trillions* of Dollars are offsides – remember this every day. https://t.co/ci9kMJZsB8
— Macro Charts (@MacroCharts) March 1, 2021
Seems like a logical place for at least some mean reversion higher or consolidation in Bonds, major intermarket implications for this big level in $TLT pic.twitter.com/LYkqT2l7jd
— Louis Sykes (@haumicharts) March 1, 2021
The bond market had an abrupt U-turn on Friday. There's not much follow-thru today. pic.twitter.com/FL4HoQ7bVN
— Eddy Elfenbein (@EddyElfenbein) March 1, 2021
$DKNG (Gambling) "American daily fantasy sports contest and sports betting operator"
Still early in the day but a close above ~64 would be a good first step for Draftkings. pic.twitter.com/22kK0fRjLn— Pratyush Tulsian (@PrattyCharts) March 1, 2021
As someone who loves betting on sports, and someone who loves stocks, this chart warms my heart. pic.twitter.com/zjehdYGuEC
— Steve Deppe, CMT (@SJD10304) March 1, 2021
Here are the top 30 stocks in the S&P 500 over the past 30 years. You'll never guess #1…
Data via @ycharts pic.twitter.com/X1rPT3teog
— Charlie Bilello (@charliebilello) March 1, 2021