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Today’s Summary
Wednesday, March 3rd, 2021
Indices: US Stocks continued lower in today’s session with the Dow Jones Industrial Average slipping 121 points or 0.39%. The S&P 500 and Nasdaq dropped 1.31% and 2.70%, respectively. The Russell 2000 closed lower by 1.06%.
Sectors: 3 of the 11 sectors closed higher. Energy led, rising 1.47%. Tech lagged, falling 2.52%.
Commodities: Crude Oil futures moved higher by 2.19% to $61.06 per barrel. Gold futures dropped 1.40% to $1,709 per ounce.
Currencies: The US Dollar Index moved higher by 0.21%.
Interest Rates: The 10-year US Treasury yield rose to 1.486%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Year 2 of a new bull market often "harder" than year 1… but not so bad… @StrategasRP pic.twitter.com/qjhoankRfu
— Chris Verrone (@verrone_chris) March 3, 2021
Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). We’re nearly one full year into the current bull market. The S&P 500 is up more than 70% since the infamous March 23rd low last year. Chris points out that, on average, the second year of a bull market tends to be less impressive than the first year, but still pretty good! According to the data in the table, the S&P 500 has historically gained an average of 42.2% in the first year of a bull market, and 12.7% in the second year. The average max drawdown in the second year of a bull market is 9.8%, so a correction within the next 12-months would be perfectly normal for the second year of a bull market.
Quote of the Day
“It is the difference of opinion that makes horse races.”
– Mark Twain
Top Links
March Jobs Report Day: Trading Historically Bullish – Almanac Trader
With monthly unemployment numbers dropping tomorrow, Jeff Hirsch examines how stocks have historically traded around the March jobs report.
March Strategy Session: Three Key Takeaways – All Star Charts
The team at All Star Charts highlights three of the most significant technical developments on their radar.
Renaissance Macro Research Degraff: I Believe Energy Has More to Run – CNBC
In this clip, Jeff DeGraff of Renaissance Macro Research shares his thoughts on Energy stocks and the current market environment.
Historic Surge for the Energy Sector – LPL Financial Research
The team at LPL Financial Research weighs-in on the recent strength in Energy stocks.
Bond Prices About to Fall Off The Cliff – Kimble Charting Solutions
Chris Kimble breaks down a chart of the 10-year US Treasury yield.
Top Tweets
All right… another day of trading in the books.
Technology and Consumer Discretionary dragged the market down, while Energy and Financials continued to trend higher.$SPY #StockMarket pic.twitter.com/HKrRD7a62V
— Jack Damn (@JackDamn) March 3, 2021
Just 5 companies (AAPL, MSFT, AMZN, TSLA, GOOGL) accounted for almost half of the S&P 500's 1.3% drop today pic.twitter.com/NwFWJXs7ZA
— Sarah Ponczek (@SarahPonczek) March 3, 2021
The S&P 500 closed right at its 50-DMA. Again. (h/t @callieabost) pic.twitter.com/pQN4SvMQYS
— Eddy Elfenbein (@EddyElfenbein) March 3, 2021
$QQQ another down day w big volume. Breaking below key area relative to broader market ($VTI). Not a good place to be for now. Last couple trips below the 50 day had quick recoveries so we'll see. Long some $QID in the meantime pic.twitter.com/IeE9PY3lc7
— Gregory Krupinski (@G_krupins) March 3, 2021
US #Value has outperformed #Growth by more than 9% since the start of February! pic.twitter.com/4g3iqrqRiI
— jeroen blokland (@jsblokland) March 3, 2021
$IWD vs $IWF the retracement continues… pic.twitter.com/kY7iTXiyVi
— Christian Fromhertz (@cfromhertz) March 3, 2021
Small value outperforming large growth over the last year is pretty wild.
H/t @maybebullish pic.twitter.com/PqwMi1xu9p
— Michael Batnick (@michaelbatnick) March 3, 2021
USDJPY & Growth / Value pic.twitter.com/12NotBcHQG
— Nautilus Research (@NautilusCap) March 3, 2021
Noteworthy relative strength in smaller stocks versus their larger kin within the Communications, Technology, Discretionary, and Real Estate sectors. pic.twitter.com/kGZ671YUvE
— ??????? ??? ??? (@BrandonVanZee) March 3, 2021
The Bloomberg Commodity Index has gained 9% YTD despite its top holding (gold) falling 8%. $XAU $GDX pic.twitter.com/wdscXYyC2w
— MicroSectors (@msectors) March 3, 2021
Dollar gaining ground above the 100d is a near term risk for stocks. Until then party on $DXY pic.twitter.com/CDgy8rEBX0
— Drew Wells, CMT, CIMA® (@DrewTheCharts) March 3, 2021
The WFH stocks are working on some decent drawdowns at the moment
Teladoc -31%
Peloton -35%
Zoom -39% pic.twitter.com/aauIcd0Y4q
— Ben Carlson (@awealthofcs) March 3, 2021