Daily Chart Report ? Tuesday, January 12th, 2021
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Today’s Summary
Tuesday, January 12th, 2021
Indices: US Stocks closed higher in today's session with the Dow Jones Industrial Average inching up 60 points or 0.19%. The S&P 500 was flat (+0.04%), while the Nasdaq rose 0.28%. The Russell 2000 outperformed significantly, gaining 1.77%.
Sectors: 6 of the 11 sectors closed higher. Energy led, rising 3.49%. Communications lagged, falling 1.61%.
Commodities: Crude Oil futures moved higher by 1.84% to $53.21 per barrel. Gold futures slipped 0.36% to $1,844 per ounce.
Currencies: The US Dollar Index fell 0.45%.
Interest Rates: The 10-year US Treasury yield slipped to 1.127%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
USD ripper would likely be bad for US stocks IMO
The correlation has been pretty negative over the last year
USD rippers usually are b/c of risk-off sentiment, which hurts stocks pic.twitter.com/Lyj9vajzFv
— Christopher Cain, CMT (@PythonTrader) January 12, 2021
Today’s Chart of the Day was shared on Twitter by Chris Cain (@PythonTrader). One of the biggest potential risks to Stocks right now continues to be the US Dollar. The S&P 500 and the US Dollar index have been in a negatively correlated regime since March. In other words, the US Dollar has fallen while Stocks have risen. This relationship begs the question; what will happen to Stocks if the US Dollar mean reverts higher from here? As Chris explains, a sharp move higher in the US Dollar would likely put pressure on Stocks. The good news is that the Dollar is in a structural downtrend, so the path of resistance is lower and any strength will likely be short-lived. Nonetheless, this is one potential risk that we want to keep an eye on in the near-term.
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Quote of the Day
"Life is what happens when you're busy making other plans."
– John Lennon
Top Links
Rest of the World Catching Up - Bespoke
Bespoke points out that foreign equity markets have caught up to US Stocks recently.
Tuesday Trends - Compound
Charlie Bilello highlights the most noteworthy trends and themes from this week.
Here's Why Gold Could Be Heading to $3,000 - Kimble Charting Solutions
Chris Kimble reminds us the long-term breakout in Gold is still intact.
One Under-the-Radar Market Signal Portends More Upside to Come - CNBC
In this clip, Ari Wald of Oppenheimer explains that breadth is signaling further gains ahead.
Signal and Noise - Marea Market Musings
Dan Russo debunks the Efficient Market Hypothesis using a recent example.
