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Today’s Summary
Tuesday, May 18th, 2021
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 267 points or 0.78%. The S&P 500 and Nasdaq dropped 0.85% and 0.78%, respectively. The Russell 2000 slipped 0.73%.
Sectors: 2 of the 11 sectors closed higher. Real Estate led, inching up 0.19%. Energy lagged, falling 2.32%.
Commodities: Crude Oil futures fell 1.16% to $65.50 per barrel. Gold futures were flat and continue to trade around $1,868 per ounce.
Currencies: The US Dollar Index dropped 0.45% to a four-month low.
Interest Rates: The 10-year US Treasury fell to 1.637%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#gold $GDX $GDXJ Gold ……. pic.twitter.com/sQnFXuBBiH
— Nautilus Research (@NautilusCap) May 18, 2021
Today’s Chart of the Day was shared by Nautilus Research(@NautilusResearch). It’s a chart of Gold over the past six decades. There’s been a lot of chatter about Gold this week, and rightfully so. The yellow metal reached a five-month high around $1,870 per ounce today. Also, It’s begun to outperform Stocks and even Bitcoin over the past month. You may remember, Gold broke out to an all-time high last summer for the first time in nine years. A lot of chart watchers were expecting a multi-year bull market for Gold from there given the massive base it had formed. However, the rally was very short-lived. It rallied about 7% over the course of just 8 days before topping out around $2,070. It then spent the majority of the past year correcting nearly 20% from its highs. Nautilus points out that each generational breakout in the past has seen a similar type of ‘stumble’ or corrective phase before the rally gained traction. Price is still about 10% below its all-time high, but it’s looking like the bull market in Gold that everyone was anticipating last summer could be back on the table.
Quote of the Day
“When everyone is looking for gold, it’s a good time to be in the pick and shovel business.”
– Mark Twain
Top Links
Short Their Optimism – All Star Charts
JC Parets highlights some tell-tale signs of excessive optimism in the stock market.
One Eye on “Reflation” Sectors, One Eye on Defensive Sectors – Potomac Fund Management
Dan Russo examines the strongest/weakest sectors within the S&P 500.
GDX Bull Flag Breakout Sends Bullish Message to Gold Mining Stocks – Kimble Charting Solutions
Chris Kimble breaks down a chart of the Gold Mining ETF, $GDX.
Renaissance Macro’s Jeff deGraaf Discusses Bitcoin’s Pullback – CNBC
In this clip, Jeff deGraaf offers his technical perspective on Bitcoin.
These Are The Key Support Levels Bitcoin and Ether Need to Hold to Prevent Further Downside, Technical Analyst Says – Business Insider
Katie Stockton lays out some key price levels to watch in Bitcoin.
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Top Tweets
$COMPQ The Nasdaq continues to show Resistance on the backtest of our recent broken Trendline the past couple of sessions on a couple of tests: pic.twitter.com/fyJAnT7b7u
— Leading Edge Charts (@InformedTrader) May 18, 2021
$QQQ momentum has been making lower highs and diverging from price for a long time. Hasn't mattered yet but maybe now? We'll see but in the meantime, short QQQ with a tight leash (today's high stop) seems like a decent trade idea pic.twitter.com/WbIDp78aNE
— Gregory Krupinski (@G_krupins) May 18, 2021
Leadership for Tech & Cons Discr (blue) has faded relative to broader market … meanwhile, Energy & Financials (orange) have continued to widen their relative lead since early May
[Past performance is no guarantee of future results] pic.twitter.com/so0O55GhKx— Liz Ann Sonders (@LizAnnSonders) May 18, 2021
Is now the time to bet heavily against tech? pic.twitter.com/E0OrnGKrwK
— Mark Ungewitter (@mark_ungewitter) May 18, 2021
NASDAQ trading volume surged 240% from Nov 2019 to Mar 2021 (even with a log scale chart, it went vertical). It has since dropped 20%. Have seen similar trend in equity call activity. Looks like speculative unwind is still ongoing. pic.twitter.com/cebtTvAgkd
— Willie Delwiche (@WillieDelwiche) May 18, 2021
About 6+ months ago people were losing their minds over the Put/Call ratio going lower. Traders buying calls is a good thing not something to be fearful of. But now the ratio is going higher, as more puts are purchased, and it seems to be going unnoticed. pic.twitter.com/QHJn80tES2
— Andrew Thrasher, CMT (@AndrewThrasher) May 18, 2021
The US Dollar Index is (#DXY) down to its lowest level since early January, helping market sentiment. #USD pic.twitter.com/4Ri95dByz0
— jeroen blokland (@jsblokland) May 18, 2021
Am I wrong that this looks like a big smiley face, waiting to take off? @allstarcharts #gold pic.twitter.com/nImS9TYhlI
— Corey McLaughlin (@Corey_McL) May 18, 2021
Miners strength improving. pic.twitter.com/U3xG9G50is
— Strategas (@StrategasRP) May 18, 2021
What supports Gold higher here? 1) Leadership from the Miners; 2) All-time high for NEM; 3) Silver's strength; 4) agnostic GLD flows; 5) DXY in a downtrend. $GLD $GDX @StrategasRP
— Chris Verrone (@verrone_chris) May 18, 2021
May be early days on this ratio moving much higher. Gold over #Bitcoin a.k.a. hard assets over digital assets? $GLD pic.twitter.com/w1vlBXuiPO
— David Keller, CMT (@DKellerCMT) May 18, 2021
Everyone is watching Gold but check out the Chems. pic.twitter.com/Q3T1e674TS
— Dan Russo, CMT (@DanRusso_CMT) May 18, 2021
You’re all caught up now. Thanks for reading!