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Today’s Summary
Monday, May 10th, 2021
Indices: US Stocks kicked off the week on a sour note. The Dow Jones Industrial Average closed flat (-35 points or 0.10%). The S&P 500 fell 1.04%, while the Nasdaq dropped 2.55%. The Russell 2000 underperformed, falling 2.59%.
Sectors: 6 of the 11 sectors closed higher. Utilities led, rising 1.01%. Tech lagged, dropping 2.52%.
Commodities: Crude Oil futures were flat, and continue to trade around $64.92 per barrel. Gold futures moved higher by 0.34% to $1,838 per ounce.
Currencies: The US Dollar Index inched higher by 0.05%.
Interest Rates: The 10-year US Treasury rose to 1.602%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Don't look now, but QQQs need to get it together by the close. $QQQ vs $SPX pic.twitter.com/T0IIurxJhE
— David Zarling, CMT (@AdaptivCharts) May 10, 2021
Today’s Chart of the Day was shared by David Zarling (@AdaptivCharts). It’s a ratio chart of the Nasdaq 100 vs. the S&P 500 ($QQQ/$SPX) over the past 1.5 years. David points out that the Nasdaq is breaking down relative to the S&P 500. This ratio has been chopping back and forth within a range for the majority of the past year. However, we decisively broke down from that range in today’s session. In other words, don’t be surprised if the tech-heavy Nasdaq continues to lag the S&P 500 in the weeks/months ahead.
Quote of the Day
“It’s a regret business. If you buy and it goes up, you regret not buying more. If you buy and it goes down, you regret buying.”
– David Lundgren
Top Links
Charting the Sell-Off – CNBC
In this clip, Chris Verrone of Strategas Research offers his perspective on today’s tech-driven sell-off.
Looking Beyond Bitcoin – All Star Charts
The team at All-Star Charts takes a look at the recent price action in the Crypto space.
Noice – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the major technical developments to watch in the near term.
Old Hat is Back – Rieben Finanacial
Greg Rieben shares his thoughts on the change in leadership that we’re seeing in the stock market.
Inflation in Focus – Momentum Monday
In their weekly Momentum Monday show, Howard Lindzon, and Ivanhoff highlight the hottest stocks, trends, and themes across the markets.
Top Tweets
There you go.
The S&P's first 1% drop in 35 trading days, which was the longest streak since Nov. 2019.https://t.co/WYCxX9nI7X
— Callie Cox (@callieabost) May 10, 2021
This is what a bifurcated market looks like….@markminervini @TheChartReport pic.twitter.com/hcvUVkDK6s
— Mansi (@TraderMansi) May 10, 2021
On Friday, the Nasdaq snapped an 8-day streak of losing to the S&P 500. But it only beat the S&P 500 by a modest amount. Today, the Nas is getting trounced again. pic.twitter.com/z3P9244iXJ
— Eddy Elfenbein (@EddyElfenbein) May 10, 2021
While S&P500 has made a number of higher highs during the last several weeks, Nasdaq has not been able to do the same. We have a divergence in place. pic.twitter.com/wjzv0tiPja
— Yuriy Matso (@yuriymatso) May 10, 2021
$QQQ / $SPY ratio chart, monthly – if you haven't traded for more than 10 years, you haven't seen a market where the QQQ's haven't led pic.twitter.com/JlbG1k1Wnz
— @theEquilibrium (@theEquilibrium) May 10, 2021
2000 is mostly remembered as a terrible year for the market after an epic 90s run. But it was really just a terrible year for the high-flying Tech stocks and the Nasdaq 100. The S&P 500 Equalweight index closed 2000 up 7.6% YTD. pic.twitter.com/HqW0wMc7c0
— Bespoke (@bespokeinvest) May 10, 2021
$SMH Key Support line break in the Semi's today which raises a caution flag per the broad market…Semi's often lead both up and down: pic.twitter.com/7rxn5Jyp03
— Leading Edge Charts (@InformedTrader) May 10, 2021
$XLU vs. $SMH pic.twitter.com/AYg1ulTCSR
— Ian McMillan, CMT (@the_chart_life) May 10, 2021
Weak USD pic.twitter.com/RDX8wBjeIK
— Strategas (@StrategasRP) May 10, 2021
As the $DXY fades and fades, commodity currencies remain in uptrends. pic.twitter.com/AIibSQjbOg
— Dan Russo, CMT (@DanRusso_CMT) May 10, 2021
CRB Commodity Index has more than doubled since the lows last April, at its highest level in 5 years. $CRB pic.twitter.com/xod8xVmM3A
— Charlie Bilello (@charliebilello) May 10, 2021
The last time copper based for many years and broke out it gained more than 200% very quickly.
After 13 plus years of consolidating, it appears to be breaking out once again.
Will history rhyme? pic.twitter.com/6acYCzq1jr
— Ryan Detrick, CMT (@RyanDetrick) May 10, 2021
Update: The Flippening$ETH $BTC pic.twitter.com/cqlZhWz6jA
— J4 (@J4_doji) May 10, 2021
THE FLIPPENING HAPPENED$WOOD is now outperforming Wood over the last year pic.twitter.com/NeTmGA59M2
— Joe Weisenthal (@TheStalwart) May 10, 2021
You’re all caught up now. Thanks for reading!