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Today’s Summary
Thursday, May 13th, 2021
Indices: US Stocks recouped some of yesterday’s losses in today’s session, with the Dow rising 434 points or 1.29%. The S&P 500 and Nasdaq closed higher by 1.22% and 0.72%, respectively. The Russell 2000 outperformed rising 1.68%.
Sectors: 10 of the 11 sectors closed higher. Utilities led, rising 1.93%. Energy was the only sector that closed lower, falling 1.22%.
Commodities: Crude Oil futures dropped 3.42% to $63.82 per barrel. Gold futures were flat (0.07%) and continue to trade around $1,824 per ounce.
Currencies: The US Dollar Index was flat (0.06%).
Interest Rates: The 10-year US Treasury fell to 1.659%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Active investment managers have been active: NAAIM exposure index dropped to 47 this week, lowest level in a year.
It's dropped 57 points over the past two weeks, third largest such decline in history (only larger were Mar 2020 and Jan 2008). pic.twitter.com/5C94MR9Sip
— Willie Delwiche (@WillieDelwiche) May 13, 2021
Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). It’s a chart of the S&P 500 over the past four years (dark blue), along with the NAAIM Exposure Index (light blue). The S&P 500 hasn’t even pulled back 5%, and yet this sentiment indicator just plunged to its lowest level since March 2020. As Willie points out, this marks the third-largest two-week decline in the history of the NAAIM Exposure Index. So, does this mean sentiment has been reset and a tradeable bottom is in? In a comment to The Chart Report, Willie said, “This drop in exposure was probably a result of active fund managers being overweight Tech and having to unwind those positions. So, while this is the lowest exposure we’ve seen in a year, I think it could fall even further before sentiment has truly been reset and a tradeable bottom is in.”
Quote of the Day
“Life can only be understood backwards, but it must be lived forwards.”
– Søren Kierkegaard
Top Links
Breadth Metrics are Bent, Not Broken, As Equities Pull Back – Potomac Fund Management
Dan Russo checks on market breadth after this week’s pullback.
Bullish Sentiment Down Bad – Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
Renaissance Macro Research Founder on Why Money Has Moved Out of Tech – CNBC
In this clip, Jeff deGraaf of Renaissance Macro shares his thoughts on the recent weakness in the Technology sector.
Door is Open For Developed International Stocks – LPL Financial Research
The team at LPL Financial Research explains why Developed International Stocks are beginning to look attractive relative to US Stocks.
Fact Check: This Bitcoin Selloff is Nothing Like the Others – Oliver Renick
Here’s a good read from Oliver Renick, in which he discusses how Bitcoin lives and dies by momentum.
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Top Tweets
Watching if previous support is becoming new resistance. Still too early to say but appears 4130 has drawn in a few sellers. $SPX $SPY pic.twitter.com/pswNpS7FvO
— Andrew Thrasher, CMT (@AndrewThrasher) May 13, 2021
$NDX down 4 wks in a row, which is not that unusual. Surprisingly, it has only been down a 5th week twice since 03/09 – in 2011 and 2012 (6 and 7 wks, respectively). Current selloff is 7% vs ~10% in those instances pic.twitter.com/uZYIn6jXJZ
— Urban Carmel (@ukarlewitz) May 13, 2021
Is the correction over? Has it even started? $SPY pic.twitter.com/wLLAxnXAdN
— David Settle, CMT (@davidsettle42) May 13, 2021
$SPY and % of stocks above 50MA, lower highs and lower lows pic.twitter.com/ORUqdmqha9
— Bailey.Baxter2020 (@BBaxter2020) May 13, 2021
Crucial level here in the Equal Weight Consumer Discretionary vs Equal Weight Consumer Staples ratio.$RCD / $RHS pic.twitter.com/8DGImUBS0q
— R. Alfonso Depablos (@AlfCharts) May 13, 2021
You seen what some of these furniture stocks have done in the past year?! ?$RH +333.89% $ETH +223.83% $LOVE +413.16% $WSM +165.65% $MLHR +123.76% $BSET +491.81% $HOFT +193.76% $HVT +250.99% $LZB +99.68% pic.twitter.com/qowg7cAdYn
— Grayson Roze (@GraysonRoze) May 13, 2021
If you look at this ratio between precious metals and industrial metals which one is cheaper for you now? which one would you accumulate now? $ COPPER $ GOLD … https://t.co/CQuFNj9YeQ pic.twitter.com/vmnEoX3bCa
— Stefano Bottaioli (@stebottaioli) May 13, 2021
Going back to 1950, 8 times in which #SPX & #copper were both up at least 7.5% on the year at this point.
The tables summarize how stocks & copper did over next month, 3 months & rest of the year
You sure you want to sell stocks and own copper? pic.twitter.com/khku64rgYB
— Seth Golden (@SethCL) May 13, 2021
Grains and beans rolling over? pic.twitter.com/TSEbwlG2YM
— Joe Weisenthal (@TheStalwart) May 13, 2021
#Corn running into resistance at a logical level. $ZC_F pic.twitter.com/JkQ5N3fduc
— Ian Culley (@IanCulley) May 13, 2021
$ARKK – Updated chart
Heavy selling (price broke < Tuesday's low) but 50% Fib level touched today.
Now, we wait to see whether this will provide support or if lower Fib level will come into play. pic.twitter.com/hFCmQJJMiG
— Puru Saxena (@saxena_puru) May 13, 2021
Tesla breaks below its 200-day moving average for the first time since March 2020, down 36% from its January high. $TSLA
Charting via @ycharts pic.twitter.com/TxYEtqtKR5
— Charlie Bilello (@charliebilello) May 13, 2021
Musk-related tweet, or not, it’s important to note where #Bitcoin’s selloff stopped and where it bounced "to the penny”.
All hail the 150-day moving average. $XBT pic.twitter.com/dq6WzMhS4o
— Carter Braxton Worth (@CarterBWorth) May 13, 2021
When will the selling pressure of $BTC subside?
Wrong question?
Right question: When will 50% of the laser eyes on Twitter disappear? pic.twitter.com/fGJMFb86oz
— Peter Brandt (@PeterLBrandt) May 12, 2021
You’re all caught up now. Thanks for reading!