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Today’s Summary
Monday, May 17th, 2021
Indices: US Stocks closed slightly lower to start the week. The Dow inched lower by 54 points or 0.16%. The S&P 500 and Nasdaq slipped 0.25% and 0.38%, respectively. The Russell 2000 outperformed and managed to close higher by 0.11%.
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining 2.32%. Utilities lagged, falling 0.82%.
Commodities: Crude Oil futures rose 1.55% to the highest level in more than two years at $66.38 per barrel. Gold futures jumped 1.60% to $1,868 per ounce.
Currencies: The US Dollar Index inched lower by 0.10%.
Interest Rates: The 10-year US Treasury rose to 1.652%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Has the time come? pic.twitter.com/UM4JYzs8lu
— Ian McMillan, CMT (@the_chart_life) May 17, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a ratio chart of Gold Futures vs. Bitcoin over the past year. A few weeks ago, Ian pointed out that Ethereum was breaking out vs. Bitcoin, and that pair has gone vertical since then. Now, Ian is pointing out that Gold is starting to breaking out relative to Bitcoin. In a comment to the Chart Report, Ian said, “This one is interesting from a sentiment perspective. I’ve had old friends reach out to me recently wondering when they should buy Bitcoin. Meanwhile, nobody is asking me when to buy Gold despite the fact that it has actually outpaced Bitcoin by a decent margin over the past month (Gold +7% vs. BTCUSD -30% over the past month). It’s hard for me to get excited about Bitcoin right now when even one of the most unloved assets (Gold) is beginning to outperform it.”
Quote of the Day
“Amateurs know the rules, but experts know the exceptions.”
– Ralph Acampora
Top Links
Cash & Champagne – All Star Charts
JC Parets shares his thoughts on the current market environment.
Recovery Stocks On the Move Again – Momentum Monday
In their weekly Momentum Monday show, Howard Lindzon and Ivanhoff highlight the hottest stocks, trends and themes across the markets.
Active Manager Sentiment Sinks – Bespoke
Bespoke examines the recent drop in bullish sentiment.
Shake & Bake – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments on their radar.
Stocks and the Hot Vax Summer – Ally Invest
Here’s a good read for financial advisors, in which Callie Cox explains how investors should approach the summer doldrums.
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Top Tweets
$NQ, 1h
If you are a tech dip buyer…
This is the third Nasdaq's short-term rally that is being faded since the April's top.
Is the 13000 level retest next? pic.twitter.com/pjzp15eGqy
— Yuriy Matso (@yuriymatso) May 17, 2021
Growth versus Value ratio is back beneath the 2000 peak.
Continues to support continued outperformance from value here. And could be a long way to fall as well. pic.twitter.com/SmW3cvLzvC
— Ryan Detrick, CMT (@RyanDetrick) May 16, 2021
Is this what is coming in the energy sector?
Here is Large-cap Energy $XLE relative to the S&P 500 $SPY pic.twitter.com/27P5SCEpE8
— R. Alfonso Depablos (@AlfCharts) May 17, 2021
Crude awakening? pic.twitter.com/at8mRkjYr6
— Jay Woods (@JayWoods3) May 17, 2021
Summer road-trippers better hope $RBOB gasoline doesn't finally punch through resistance here. When it does the move is going to be dramatic and the price at the pump will be gut wrenching pic.twitter.com/rq75YTCKbp
— Tarek I. Saab (@FibLines) May 17, 2021
$GDX closes at its highest level since Nov ’20. pic.twitter.com/BTzrnIwOca
— Shane C. Murphy (@murphycharts) May 17, 2021
Do Treasury Bonds rebound and rally off their 2016 and 2019 highs like Gold Miners just did? $IEF $GDX pic.twitter.com/FcEa8lfeuM
— Steven Strazza (@sstrazza) May 17, 2021
Here's $GDX relative to BTC, COPX, SPX, XLF. pic.twitter.com/iE1MBQCyrq
— Brian G (@alphacharts) May 17, 2021
$SLV Is it a coincidence that Silver keeps coming back to this $26 level? Probably not … pic.twitter.com/ZlMgWCiW1g
— Pratyush Tulsian (@PrattyCharts) May 17, 2021
The price of #silver is back above USD 28…again. pic.twitter.com/WpIlEF3Lzb
— jeroen blokland (@jsblokland) May 17, 2021
Silver weekly technicals…think this market made everyone miserable enough for the last 10 months…"time to make it pay." pic.twitter.com/KfZfObTVqe
— Linda Raschke (@LindaRaschke) May 17, 2021
Gold/Bitcoin ratio $GC_F $BTC
Has the corner been turned? pic.twitter.com/1NQ8ST6mD6— Peter Brandt (@PeterLBrandt) May 17, 2021
Bitcoin drawdowns. -30% largest in more than a year. pic.twitter.com/wnx8NXJ0pr
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 17, 2021
We're seeing some demand at the 41,000 level, but a decisive move below there, and all bets are off $BTC pic.twitter.com/kZV82VEZ5I
— Louis Sykes (@haumicharts) May 17, 2021
#Bitcoin now below important support level and sequencing lower lows and lower highs. This is coming on the back of 3m of weakness in other "concept finance" areas like #software, #solar, #biotech, etc. pic.twitter.com/F4BtsYpUSg
— RenMac: Renaissance Macro Research (@RenMacLLC) May 17, 2021
Bitcoin has been a leading risk indicator for major market turns in recent years.
Led the:
Jan 18' equity top to the downside by a few weeks
Dec 18' equity bottom by a few weeks
Mar 20' equity bottom by a few daysPeaked again in mid-April a few weeks before equities… pic.twitter.com/eukzV5Kvv3
— The Bear Traps Report (@BearTrapsReport) May 17, 2021
I'm sure it's just a coincidence but kind of crazy that bitcoin topped out basically the same day of the Coinbase IPO pic.twitter.com/vb8VNR85KF
— Ben Carlson (@awealthofcs) May 17, 2021
If Yogi Berra were a trend follower, I think he'd have said something like: "Downtrends can't reverse until they stop going down". Which is 100% true. $ARKK
— @theEquilibrium (@theEquilibrium) May 17, 2021
You’re all caught up now. Thanks for reading!