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Today’s Summary
Wednesday, April 21st, 2021
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 316 points or 0.93%. The S&P 500 also rose 0.93%, while the Nasdaq gained 1.19%. The Russell 2000 outperformed, rising 2.35%.
Sectors: 10 of the 11 sectors closed higher. Materials led, gaining 1.82%. Utilites was the only sector to close lower, falling 0.84%.
Commodities: Crude Oil futures fell 2.11% to $61.35 per barrel. Gold futures rose 0.83% to $1,793 per ounce.
Currencies: The US Dollar Index inched lower by 0.10%.
Interest Rates: The 10-year US Treasury was unchanged at 1.557%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by Nick Reece of Merk Research (@nicholastreece). While excessive optimism remains a short-term risk to stocks, Nick explains that the S&P 500 is not in bubble territory yet. In the note, Nick wrote, “The term “bubble has lost its meaning from overuse; so I’ve chosen four well-known market crashes and worked backwards from there. I’ve used 1929, 1987, 1999/2000, and 1989 Japan. I’ve chosen a simple indicator for market performance: the % above its 10-year moving average. All four crashes occurred after the market was well above 100% of its 10-year moving average (120% was the lowest common threshold). The S&P 500 is not yet at levels consistent with 1929. 1987, 1999/2000, or 1989 Japan, but it’s getting closer. For now, comparisons to those manias are still premature.”
Quote of the Day
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.”
– Victor Sperandeo
Top Links
Is the Transportation Sector (IYT) the Market’s Silver Lining? – StockCharts.com
Mish Schneider points out that transportation stocks have been resilient despite recent weakness in the broader market.
Bill Bailey On What The TLT ETF Is Signaling For Broader Markets – TD Ameritrade Network
Bill Bailey offers his technical perspective on stocks and bonds.
A Mess, Not a Crash – All Star Charts
JC Parets shares his thought on the current market environment.
Victor Sperandeo “Stay in Business” – Against All Odds Research
Jason Perz interviews Trader and Market Wizard, Victor Sperandeo.
Next Bump in Post-Election Year Rally Could Be in May – Almanac Trader
Seasonality expert, Jeff Hirsch explains that post-election years typically see weakness starting in mid-May.
Top Tweets
Strong upside participation today with 81% of the @NYSE and 80% of the @NASDAQ moving higher. $NYA +1.11% $COMPQ +1.19% pic.twitter.com/HCpilrtcrB
— Grayson Roze (@GraysonRoze) April 21, 2021
While indices moved lower yesterday, the % of S&P 500 stocks above the 200-day MA made a new high, 96.6% – the highest reading since October 2009.$SPX $SPY pic.twitter.com/SouOG6ROZ7
— Andrew Thrasher, CMT (@AndrewThrasher) April 21, 2021
Now seeing breadth divergence … given weakness in past couple days, % of S&P 500 members > 50d moving averages has fallen … same metric for 200d still healthy for now pic.twitter.com/xJmwz8H1q2
— Liz Ann Sonders (@LizAnnSonders) April 21, 2021
Possible much of the market has already experienced the decline that many are awaiting. $IWC hit the band 2 standard deviations below the 50-DMA for the first time since its September low yesterday while the NASDAQ has more washed out breadth than at the late October low. $SPY pic.twitter.com/kJUTaFmwis
— Andrew Adams CFA, CMT (@DayTraderGator) April 21, 2021
Micro-Cap ETF… $IWC. pic.twitter.com/jHstRSOGIx
— Amjad. (@StreetCharts) April 20, 2021
Sectors making new highs today: Materials, Real Estate, Health Care & Consumer Staples.
Good luck with narrative creation around that. pic.twitter.com/v5dSDSPUZz
— Willie Delwiche (@WillieDelwiche) April 21, 2021
Palladium Futures breaking out of a multi-month base to record highs ? pic.twitter.com/KjajXo1q5T
— R. Alfonso Depablos (@AlfCharts) April 21, 2021
For all your catalytic converter needs… $PA_F $PALL
All aboard. pic.twitter.com/IZNx4x849Z
— Dan J. Gorghuber, CMT (@Futures_Runner) April 21, 2021
There's plenty of short-term consolidations out there. The direction in which these consolidations resolve will be telling of the environment that lies ahead. $PL_F, #Bonds, #Stocks, #Commodities pic.twitter.com/XWvE5BDJgE
— Ian Culley (@IanCulley) April 21, 2021
#Silver has taken out all of the weekly moving averages and now is poised to break out of its pennant. It was a long grind but it looks like the #hodlers are about to be rewarded. #XAGUSD $PSLV $SILJ pic.twitter.com/42IxLIzi2p
— The Third Coast (@ThirdCoastTA) April 21, 2021
The price of lumber is up 307% over the last 12 months. pic.twitter.com/slBr9nRGYs
— TradingView (@tradingview) April 21, 2021
Bitcoin's technicals look ugly for the first time since the rally started.
Also seeing weakness in all the related plays (ex. GBTC MSTR OSTK). Coinbase is also sucking up a lot of capital too along with alt coins like Doge. Hopefully the mania dies soon. So sick of all of it. pic.twitter.com/U79u2mgMel
— The Long View ? (@HayekAndKeynes) April 21, 2021
Ethereum $ETH finally back above its January 2019 highs relative to Bitcoin $BTC right as ETH 2.0 rollout is around the corner $ETHBTC pic.twitter.com/7GqpDTAlRq
— Louis Sykes (@haumicharts) April 21, 2021
To be brutally honest, I stare at the chart of ETH/BTC and I see an enormous rounded bottom with potentially huge breakout just above…. pic.twitter.com/85hfawq0bx
— Raoul Pal (@RaoulGMI) April 21, 2021
The Flippening.$ETH $BTC pic.twitter.com/XjoczLyOUE
— J4 (@J4_doji) April 21, 2021