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Today’s Summary
Wednesday, May 12th, 2021
Indices: US Stocks continued lower in today’s session with the Dow falling 682 points or 1.99%. The S&P 500 and Nasdaq dropped 2.14% and 2.67%, respectively. The Russell 2000 underperformed, tumbling 3.26%.
Sectors: 10 of the 11 sectors closed lower. Energy was the only sector that closed higher, rising 0.48%. Consumer Discretionary lagged, dropping 3.39%.
Commodities: Crude Oil futures moved higher by 0.96% to $66.08 per barrel. Gold futures dropped 0.72% to $1,823 per ounce.
Currencies: The US Dollar Index gained 0.67%.
Interest Rates: The 10-year US Treasury continued higher to 1.702%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
I am not big on analogs, but this $SPX one does give pause… #fairleadstrategies pic.twitter.com/SQSw7fN0OZ
— Katie Stockton, CMT (@StocktonKatie) May 12, 2021
Today’s Chart of the Day was shared by Katie Stockton (@StocktonKatie). A lot of analysts have been pointing to this chart recently. It’s an analog chart comparing the current recovery (white) to the 2009 recovery (pink). As we know, history doesn’t always repeat exactly so analog charts need to be taken with a grain of salt. That being said, the current recovery has tracked the 2009 recovery very well so far. Coming off the 2009 low, the S&P 500 rallied about 80% over the course of about 14 months before stalling out for the next 6 months. Here we are today, up about 80% in the past 14 months since the March 2020 low. Keep in mind we’re also facing seasonal headwinds as we enter the “worst six months” for the S&P 500 (May-November). Will the S&P 500 continue following the path of the 2009 recovery? If so, we could be due for some turbulence in the coming months.
Quote of the Day
“That men do not learn very much from the lessons of history is the most important of all the lessons of history.”
– Aldous Huxley
Top Links
Apple (AAPL) Falls From the Tree – Bespoke
Bespoke points out that the largest stock in the world just closed below its 200-day moving average for the first time in more than a year.
ARK ETF About to Fall Another 30%? – Kimble Charting Solutions
Chris Kimble takes a look at a bearish pattern forming on the chart of the popular ARK innovation ETF, $ARKK.
2021 is not 2020 – All Star Charts
JC Parets explains why he’s short the Nasdaq.
Why Big Tech is Tuesday’s Main Focus – StockCharts.com
Mish Schnieder lays out some key levels to watch in the remainder of the week.
Gold Stocks Glitter Despite a Pause for Broader Equity Averages – Potomac Fund Management
Dan Russo shares his thoughts on this week’s price action and points out that gold stocks are showing relative strength.
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Top Tweets
Tech wreck. Again. Nasdaq down 2.5% today and now about 8% below record high.
— Paul R. La Monica (@LaMonicaBuzz) May 12, 2021
Nasdaq almost flat for the year. pic.twitter.com/JNCKWRzFBm
— Michael Goodwell (@MichaelGoodwell) May 12, 2021
The Nasdaq 100 has given up just about all of its lead over the S&P 500 on a one-year look. pic.twitter.com/2I4P7SRdJM
— Michael Santoli (@michaelsantoli) May 12, 2021
The Nasdaq seems to be hanging on by a thread in price, but the breadth underneath may already be broken…$NDX $QQQ pic.twitter.com/vNdb8lvkrU
— Ian McMillan, CMT (@the_chart_life) May 12, 2021
A 3.5% move down from the highest close $SPX coming off an 89% rally (off the lowest close in March 2020) is NOT a correction. This chart shows any 10% decline so we've gone nearly 14 months without a 10% drop (from highest close to lowest close). pic.twitter.com/n4ybiV7AYM
— David Settle, CMT (@davidsettle42) May 12, 2021
Who's calling this a "big sell off"? Two days ago- record high 35000. Today's low tick? 33461 or down
1539 points. 4.3%. After a yr rally where we "gained" from 18086 March '20 panic low- 16,941 points- 94%. How about a teaspoon of perspective people? pic.twitter.com/5V7HCNGJ2D— Chris Robinson (@cer_hedge) May 12, 2021
Stocks are down on inflation worries.
Or
Maybe they are down simply because after an 89% rally, we needed an excuse to blame for normal give and take.
Still amazing how closely this bull is tracking the '09/'10 bull market. pic.twitter.com/2HuyeKlIuE
— Ryan Detrick, CMT (@RyanDetrick) May 12, 2021
My "peak reopening" comparison to the mid-cycle correction in 2010 seems to playing out right on cue. The SPX seems to be rolling over almost to the day, and for a similar reason. (THREAD/1) pic.twitter.com/15AWpCiEq3
— Jurrien Timmer (@TimmerFidelity) May 12, 2021
On the 6-month intermarket view, we've got commodities making new relative highs vs. stocks $DBC vs. $VTI (bottom panel) ? pic.twitter.com/BOgEBSq14m
— Grayson Roze (@GraysonRoze) May 11, 2021
Keeping a close eye on Crude…will it manage to close above 66.28 to new 2-year highs? $CL_F pic.twitter.com/ufXAynVvDb
— Ian Culley (@IanCulley) May 12, 2021
$AAPL Looks to be at an important spot here at the rising 200 day / 40 week, previous spot of resistance turned support, and lots of volume around this level. pic.twitter.com/cBMdxuV5Zc
— Gregory Krupinski (@G_krupins) May 12, 2021
#bitcoin also down sharply as risk off sentiment grows. pic.twitter.com/S0MUhl3Q9y
— jeroen blokland (@jsblokland) May 12, 2021
Where have all the #IPOs gone?
The number of new offerings basically just peaked and collapsed in lockstep with the price of these most recently listed stocks $IPO ? pic.twitter.com/aSNBeTKelh
— Steven Strazza (@sstrazza) May 12, 2021
Basically everything that worked spectacularly last year is getting worked over right now
Current drawdowns:
IPOs -27%
SPACs -34%
ARK -34%
The market gods are fickle pic.twitter.com/i9QJItBXUv
— Ben Carlson (@awealthofcs) May 12, 2021
You’re all caught up now. Thanks for reading!