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Today’s Summary
Monday, April 19th, 2021
Indices: US stocks kicked off the week on a sour note with the Dow Jones Industrial Average slipping 123 points or 0.36%. The S&P 500 and Nasdaq fell 0.53% and 0.98%, respectively. The Russell 2000 underperformed, dropping 1.36%.
Sectors: 2 of the 11 sectors closed higher. Real Estate led, rising 0.27%. Consumer Discretionary lagged, falling 1.12%.
Commodities: Crude Oil futures rose 0.54% to $63.53 per barrel. Gold futures moved lower by 0.51% to $1,771 per ounce.
Currencies: The US Dollar Index dropped 0.56%.
Interest Rates: The 10-year US Treasury rose to 1.606%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Will small and micro caps eventually confirm the new highs in large caps or will large caps follow the current weakness in small/micro caps. Maybe we'll find out this week. pic.twitter.com/DUuLl7WtC1
— Andrew Thrasher, CMT (@AndrewThrasher) April 19, 2021
Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). From left to right we have; Large-Caps ($SPX), Mid-Caps ($MID), Small-Caps ($SML), and Micro-Caps ($IWC). Andrew highlights a potentially bearish divergence that’s worth keeping an eye on. Large/Mid-Cap indices reached all-time highs last week, while Small/Micro-Cap stocks failed to follow suit. As you might know, Small/Micro-Caps are often used to gauge risk appetite within the broader stock market. Their stellar outperformance over the past year has been a bullish sign of risk appetite. But this failure to reach new highs doesn’t exactly exude confidence. The primary trend is still unequivocally higher, but bulls want to see Small/Micro-Caps confirming new highs from their Large-Cap peers, rather than diverging like they are now.
Quote of the Day
“The most dangerous thing is to buy something at the peak of its popularity. At that point, all favorable facts and opinions are already factored into its price and no new buyers are left to emerge.”
– Howard Marks
Top Links
One of The Strongest Weeks of the Year – Bespoke
Bespoke points out that this week has historically been one of the strongest weeks of the year for the S&P 500 over the past 10-years.
Hoagies & Grinders – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments on their radar.
Bitcoin is Facing an Additional Drop of 23% From Current Levels After Breaching a Key Resistance Level – Business Insider
Katie Stockton shares her technical outlook on Bitcoin.
The Rotation Continues – Momentum Monday
In their weekly Momentum Monday show, Howard Lindzon and Ivanhoff highlight some of the strongest stocks, trends, and themes across the markets right now.
Can Copper Go Crazy? – StockCharts.com
Greg Schnell takes a look at a potential long-term breakout in Copper and Copper Mining stocks.
Top Tweets
April is a great month for stocks, but be aware historically most of gains happen the first few weeks.
Not to mention how the second half of each month so far this year has been way weaker than the first half. pic.twitter.com/fsxOCAXrUL
— Ryan Detrick, CMT (@RyanDetrick) April 18, 2021
$NQ, 15m
Multiple rejections at the 14000 level. This is definitely the pivot for Nasdaq going forward. pic.twitter.com/UPAxPYfw4i
— Yuriy Matso (@yuriymatso) April 19, 2021
$IWM vs $SPX
Small caps back to where they were at the start of the year on a relative basis. Lots of price history at this level. pic.twitter.com/tJTxIa4ksF— Pratyush Tulsian (@PrattyCharts) April 19, 2021
$XLE has lots of proving to do. pic.twitter.com/bDhYjZLuUV
— Mark Ungewitter (@mark_ungewitter) April 19, 2021
all these defensive assets stopped going down in price. you notice? pic.twitter.com/stAaEGXTVm
— J.C. Parets (@allstarcharts) April 19, 2021
In which direction will this pennant resolve?
Copper vs Gold pic.twitter.com/XbwdSn8Urs
— R. Alfonso Depablos (@AlfCharts) April 18, 2021
10yr Yield, Copper/Gold, Banks/Utes, Regional Banks/Real Estate, and Cyclicals/Defensives.
Copper/Gold ratio started to turn back up last week and we're seeing yields follow suit today. So far not much response or follow thru from these Equity relationships. Something to watch. pic.twitter.com/ZzvFAGgmS6
— Bob Sheehan, CMT, CFA (@LighthouseCap23) April 19, 2021
It's been a while since I've typed these words, but #gold stocks appear to be breaking out. $NEM and others breaking above trendline resistance and showing clear pattern of accumulation. Inflation concerns?….. $GDX $XAU $GLD pic.twitter.com/MBbpR1AifU
— David Keller, CMT (@DKellerCMT) April 19, 2021
Small traders in the latest CFTC data released Friday triggered a contrarian buy signal in #gold. Our relative trend work is still negative, so we play small as contrarians, will add on trend improvement. $GLD $GDX pic.twitter.com/vZG6ZuZI1Q
— RenMac: Renaissance Macro Research (@RenMacLLC) April 18, 2021
Bitcoin – first time below 50dma in more than 6 months $BTCUSD.
And some bearish divergence. #bitcoin @TheChartReport pic.twitter.com/PCfDIATlQj
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 19, 2021
Bitcoin has been on an amazing run, but it is now on pace for the first close below its 50-DMA since last October. That's the longest streak since at least 2014. pic.twitter.com/paXzre8RbW
— Bespoke (@bespokeinvest) April 19, 2021
Guess what is up limit again today? pic.twitter.com/CfMZnb3YuI
— Tom Hearden (@followtheh) April 19, 2021
#Lumber! pic.twitter.com/EnrEPbgadX
— jeroen blokland (@jsblokland) April 19, 2021