Daily Summary – January 19, 2021

 Daily Summary – January 19, 2021

I ended last Friday's summary with "At some point you'd expect a correction (most do) but as I posited yesterday, maybe we just keep doing this for a while longer." And for today at least, that's exactly what we did with most stocks positive with the right half (growth) of the style box doing the heavy lifting easily outpacing the less growthy portions of the box.  In a change from recent trends there wasn't a huge advantage to small caps versus large overall, with Naz and NDX leading today up around 1.5%, followed by RUT at 1.32% with SPX "lagging" at +0.81%.




Nothing really new to note technically.

SPX sector flag improved from what we saw the end of last week with 8 green sectors led by energy bouncing back from worst to first, only sector up over 2%. But two others, comm's and tech, were up over 1% led by those growthy stocks. The three red sectors were the three defensive bond proxies - staples, RE and utes although none down more than around half percent.  


In key subsectors, semi's followed up on their big week with a big day with SOX up over 3%(!) setting an ATH. Bios also were strong while retail lagged, up half percent, and trannies were disappointingly red. 

Unfortunately my wsj feed is acting up, so I don't have breadth data right now.  If it comes up, I'll follow up with a post on that. :-(

Outside of equities, weird day for gold and copper which both started the day up solidly before reversing strongly to very red before recovering to near unchanged levels. Nat gas didn't bother with the up part and just went straight down breaking through its 50-day MA. Looks very bearish technically. VIX also red today also looking like it wants to retest that 20 level, which I think breaks before too long. Long bonds went the opposite path from gold and copper, starting in the red before pushing mildly green. Crude also green today, but on a much less dramatic path trading in a narrow range. 

Get Chinese rate decision as well as a bunch of European CPI and PPI overnight followed by mtge apps and Redbook. Also get a BoC rate decision, and a speech from the new President. Something about a changing of the guard and some such stuff I believe.  Finally, earnings season cont's with 22 companies, but many of them S&P constituents led by PG and UNH. Markets seemed to like what they heard from Yellen today; hopefully that carries over to tomorrow's speech as well.


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