Minutes Digest for Jan 20 2021

I don't want to make anything dramatic out of this yet, because it could change, and it hasn't been a consistent pattern. But despite the Nasdaq Composite charging ahead by more than 2% so far today, fewer than 55% of securities on the Nasdaq are advancing. That's thanks to some relative weakness in smaller-cap stocks.

This would be the first time since 2002 the Nasdaq rallied so hard on such poor internal participation.

One of the few assets losing value today is bitcoin. After recently hitting an all-time high, it just crossed below its 20-day moving average.

This is the first time in nearly 40 days it fell below average.

The assumption is that it indicates the first step in a correction. But it's been a beast of a trade, and other times it fell below average for the first time in months, it tended to bounce back. From 2011 - 13, it was the first step in what proved to be sustained pullbacks. But it triggered 4 times in 2017 alone, only one of which preceded more downside.

For what it's worth, it didn't have much impact on stocks, either.