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Today’s Summary
Tuesday, April 27th, 2021
Indices: It was a boring session for US Stocks. The Dow and S&P 500 both closed flat, while the Nasdaq slipped 0.34%. The Russell 2000 outperformed, inching up just 0.14%.
Sectors: 3 of the 11 sectors closed higher. Energy led, gaining 1.21%. Utilities lagged, falling 0.77%.
Commodities: Crude Oil futures moved higher by 1.66% to $62.94 per barrel. Gold futures were flat and continue to trade around $1,779 per ounce.
Currencies: The US Dollar Index was unchanged.
Interest Rates: The 10-year US Treasury rose to 1.625%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Is this just classic Year 2 of a cycle market behavior? Like some of these others? https://t.co/By9gU9MaEt pic.twitter.com/0nHZHvzCKF
— J.C. Parets (@allstarcharts) April 27, 2021
Today’s Chart of the Day was shared in a note by JC Parets (@allstarcharts). The chart shows the S&P 500 as it was recovering from four separate bear markets – 2008-2010 (top left), 2003-2004 (top right), 1982-1985 (bottom left), 1973-1978 (bottom right). JC points out that it’s very common to see the S&P 500 trade sideways in the second year of a bull market. As you can see, all four of these recoveries followed the same playbook. There was a strong initial thrust off the lows that persisted for about a year, followed by months of sideways price action. The good news is that the S&P 500 has still logged an average gain of 16.9% in year two of a bull market. But, it’s important to keep in mind that sideways price action would be perfectly normal at this point in a bull market cycle. For more on this, read the full note here.
Quote of the Day
“The desire to perform all the time is usually a barrier to performing over time.”
– Robert Olstein
Top Links
Still Searching for Clear Leadership – Potomac Fund Management
Dan Russo takes a look at sector relative strength.
Solar and Steel Shining, Biotech Bounces, and Miners Moving – Bespoke
Bespoke examines the hottest industry group trends.
Ether Can Soar to $3,000 As Momentum Overtakes Bitcoin and Breaks Above a Key Resistance Level – Business Insider
Katie Stockton offers her technical outlook on Ethereum.
S&P 500 and DJIA Up Last 9 Post-Election Year Mays – Almanac Trader
Seasonality expert, Jeff Hirsch points out that May has a decent track record in post-election years.
Stickler For The Rules – Murphy Charts
Shane Murphy explains that beginner’s luck in trading will often end in despair without a rules-based strategy.
Top Tweets
So the S&P 500 and Dow moved a combined absolute value of only 0.031% today.
Going back five years, this is the 4th smallest day between the two of them.
What's that thing about dull markets again?
— Ryan Detrick, CMT (@RyanDetrick) April 27, 2021
"Never be too bearish when the advance-decline lines are making new all-time highs."
All confirmed EXCEPT for small caps which still are not following through and confirming recent $SPX highs… pic.twitter.com/ENfrRSmbiI— David Keller, CMT (@DKellerCMT) April 27, 2021
$IYT is cookin' once again off of a blowout move on $UPS after their earnings announcement (also $FDX in sympathy).
A few weeks ago, it was buyout interest in $KSU that was moving this hot industry.
This is the 13th straight week of gains for the Transports, longest since 1899! pic.twitter.com/ftdcI1CNd0
— ??????? ??? ??? (@BrandonVanZee) April 27, 2021
Financials ready to resume its leadership against the broader market?
Throwback to the breakout level and bounce?$XLF vs $SPY pic.twitter.com/bSjWnxPPoB
— R. Alfonso Depablos (@AlfCharts) April 27, 2021
With Crude Oil looking bullish, I expect the Energy/S&P 500 relative ratio to round out the right shoulder of an Inverse H&S. Tomorrow's EIA Inventories report should give us a clue if this will play out. $CL_F $XLE $SPY pic.twitter.com/UX9y2PCg71
— Matthew Timpane, CMT (@mtimpane) April 27, 2021
Door A or B? Don't fight the trend. pic.twitter.com/t0ROu9tIrW
— Brian G (@alphacharts) April 27, 2021
#Commodity spot prices have reached their highest level in almost 2 years, but remain far from their top. pic.twitter.com/ozcp6Szi9L
— jeroen blokland (@jsblokland) April 27, 2021
Soybeans are crushing it. pic.twitter.com/zUTFuQ4eFL
— Tracy Alloway (@tracyalloway) April 27, 2021
Base Metals are breaking out $DBB #commodities pic.twitter.com/06JXFUeXiv
— Drew Wells, CMT, CIMA® (@DrewTheCharts) April 27, 2021
Iron Ore Futures moving higher toward the next target of 190. #Commodities pic.twitter.com/Jq6AaNrb1E
— Ian Culley (@IanCulley) April 27, 2021
Tin has been on absolute beast mode pic.twitter.com/CcAuOfW79s
— ??? (@chigrl) April 27, 2021
So who's got Copper $10,000 hats ready? pic.twitter.com/fwbluwFbAx
— Joe Weisenthal (@TheStalwart) April 27, 2021
You’re all caught up now. Thanks for reading!