Daily Summary – February 9, 2021

Daily Summary – February 9, 2021

As I noted yesterday, you can't go up forever, but for a "down" day it was about as mild as you can get with SPX down a tenth and NDX six hundredths. Small caps continued their winning ways though helping the Naz to a mildly positive finish and pushing the RUT to a 7th straight advance leading up four tenths. It was the small growth stocks which fared the best large value the worst (value lagged growth in general today).

With the muted action, nothing really changed technically except RUT pushed a little closer to that trendline. 

With the mild down day (as opposed to up day y'day) some definite deterioration in the SPX sector flag with only 5 green sectors and none up over half a percent led by RE. Only one sector down over 1% (energy which started down with crude and despite crude reversing couldn't recover its losses).   

Nothing really worth noting on the sector charts. 

In key subsectors, semi's and retail were down around a half percent, large bios around that much also, small a little more, and transp was the winner finishing up eight tenths.

Breadth back to acting a bit funky with outsized positive volume on the Naz which had 76% up volume. Otherwise the numbers were as you'd expect with NYSE 47% positive volume (disappointing but not completely out of line) and 56% positive issues (which is better) and 58% positive issues Naz. We saw this (outsized positive Naz volume) consistently back in January along with all of the call buying so wonder if that's back.  

Outside of equities, as with RUT, crude recovered from losses to finish green for a 7th straight day with WTI continuing to hug the top of its channel and the RSI edging up a bit further towards 80. Also green were copper, gold, VIX, and long bonds although all were muted except copper which is getting close to pushing up to new highs.  Nat gas was red despite continued very cold weather forecasts for next couple weeks and dollar decline had enough momentum to push through the 20 and 50-day MA's. If it can't recover tomorrow seems like next test is the 90 level DXY.

Overnight we get lots of PPI and CPI data globally followed by mortgage apps, CPI, EIA, Treasury budget, and a Powell speech here in the US.  Impeachment proceedings will also continue.  And, of course, earnings season continues apace with 158 reports headlined by KO and UBER (UBER is a $100B co? wow).  GM also reports which I'm sure will get a lot of attention.

Overall, clearly a loss of some momentum today.  We'll see if this is leads to a consolidative period. Definitely wouldn't be a bad thing.

Finally,  I wrapped up y'day with a note about how we were seeing an unprecedently bad reactions to a great earnings season.  It looks like that might be changing?  Bespoke tweeted this out today.  Of course, but don't tell that to TTWO or DD who both had great reports that were sold.