Minutes Digest for Jan 20 2021
Nasdaq participation
- Published:
2021-01-20 13:57:00 - Author: Jason Goepfert
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.
The air is coming out of bitcoin
- Published:
2021-01-20 09:10:58 - Author: Jason Goepfert
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.