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Today’s Summary
Thursday, May 20th, 2021
Indices: US Stocks closed higher across the board in today’s session, with the Dow advancing 188 points or 0.55%. The S&P 500 and Nasdaq gained 1.06% and 1.77%, respectively. The Russell 2000 rose 0.64%.
Sectors: 10 of the 11 sectors closed higher. Tech led, rising 1.91%. Energy lagged for the third straight day, inching lower by 0.15%.
Commodities: Crude Oil futures dropped 2.23% to $61.94 per barrel. Gold futures rose 0.63% to $1,882 per ounce.
Currencies: The US Dollar Index dropped 0.47%.
Interest Rates: The 10-year US Treasury fell to 1.628%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#Bitcoin update: After hitting our 30k target, we're now in the "reflexive" zone. We're looking for a massive rebound to just under 50k where we anticipate prices stall. pic.twitter.com/QPheJh6fmz
— RenMac: Renaissance Macro Research (@RenMacLLC) May 20, 2021
Today’s Chart of the Day comes from Renaissance Macro Research (@RenMacLLC). It’s a point & figure chart of Bitcoin. The spectacular rise in Bitcoin over the past year has sucked in a new class of hodlers’ like a rip current in the ocean. But yesterday, a lot of those new market participants found out what risk was for the first time. We’ve been following this trend since last May, and there has been no reason to fight it up until recently when it began losing strength relative to things like Gold. Bitcoin lives and dies by momentum. Once that momentum is gone, the script flips from “Buy the Dips” to “Sell the Rips.” As of writing, Bitcoin has already rebounded more than 30% from yesterday’s low of $30k, back to $40k. Renaissance points out that the ongoing reflex rally could carry higher towards $50k. However, there is a significant amount of overhead supply just below $50k that will likely put pressure on it.
Quote of the Day
“A successful trader studies human nature and does the opposite of what the general public does.”
– W. D. Gann
Top Links
A Long Tail on Utilities Signals Power for Defense – StockCharts
Julius de Kempenaer points out that the Dow Jones Utilities Index is beginning to show strength vs. Transports and Industrials.
When it Comes to Breadth, Your Time Frame Matters – Potomac Fund Management
Dan Russo shares his notes on market breadth.
Gold is Starting to Outperform Gold: Technical Analyst – BNN Bloomberg
In this clip, Todd Sohn of Stratgas Research offers his perspective on Stocks, Crypto, and more.
Gold is Breaking Out? – Fibonacci.com
Tarek Saab takes a look at Gold, Silver, and Gold Miners.
Crypto Crashes. Now What? – All Star Charts
Louis Sykes assess the damage in the Crypto markets.
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Top Tweets
Last week:
Decline Monday-Wednesday, gain 1% on Thursday, but "lose some steam into the close".
This week:
Decline Monday-Wednesday, gain 1% on Thursday, but "lose some steam into the close".
May is like Groundhog Day. $spx
— Steve Deppe, CMT (@SJD10304) May 20, 2021
Yesterday was the highest total put/call ratio since late October. Like I've said, it doesn't take much for people to get negative during pullbacks/corrections. $CPC pic.twitter.com/CIVtEmcZjG
— Joseph Fahmy (@jfahmy) May 20, 2021
Just a slight uptick in @AAIISentiment bull-bear spread this week … overall, sentiment has cooled from recent peak in early April, but bulls still outnumbering bears pic.twitter.com/RQGeLAdVTt
— Liz Ann Sonders (@LizAnnSonders) May 20, 2021
SPX weakest among these 6 in the last week. $EEM $NDX $EFA $FM $IWM $SPX pic.twitter.com/GtOL46184d
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 20, 2021
Growth holding up well this week as it works on put in a double bottom in relative performance against value with momentum showing a bullish divergence. $RPV $RPG pic.twitter.com/jB4FLxKeLZ
— Andrew Thrasher, CMT (@AndrewThrasher) May 20, 2021
$ARKK Plenty of high growth names reclaiming their breakdown levels. That's a good start. The 105/106 level looks pretty significant for Ark stocks. pic.twitter.com/bZ3zbn0YvQ
— Pratyush Tulsian (@PrattyCharts) May 20, 2021
$BAC new ATH breakout this week. I still think alot more to go for the Financials. pic.twitter.com/iLiF4kD6ad
— Larry Tentarelli, Blue Chip Daily (@LMT978) May 20, 2021
Pharma stocks pushing above their 2015 highs would be a huge tailwind for the Healthcare sector. pic.twitter.com/xOh9hEUJk0
— Ian McMillan, CMT (@the_chart_life) May 20, 2021
Gold in dollars, euro, & yen pic.twitter.com/3b69XEdgf1
— Mark Ungewitter (@mark_ungewitter) May 20, 2021
Very hard for #Bitcoin to move higher than $42,000 +/- on an intermediate basis (weeks/months). And, in the event of any prospective move above $45,000, we’re sellers, once again. $XBT pic.twitter.com/jicunBpvcO
— Carter Braxton Worth (@CarterBWorth) May 20, 2021
Last 24 hours…
Bitcoin $BTC: +37%
XRP $XRP: +39%
Polkadot $DOT: +39%
Chainlink $LINK: +39%
Litecoin $LTC: +50%
Uniswap $UNI: +52%
Ethereum $ETH: +52%
Bitcoin Cash $BCH: +53%
EOS $EOS: +54%
Stellar $XLM: +58%
Dogecoin $DOGE: +72%
Cardano $ADA: +83%
Ethereum Classic $ETC: +89% pic.twitter.com/Rpe4G9yTgh— Charlie Bilello (@charliebilello) May 20, 2021
You’re all caught up now. Thanks for reading!