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Today’s Summary
Monday, May 24th, 2021
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 186 points or 0.54%. The S&P 500 and Nasdaq rose 0.99% and 1.41%, respectively. The Russell 2000 closed higher by 0.54%.
Sectors: 10 of the 11 sectors closed higher. Communications led, rising 1.80%. Utilities was the only sector to close lower, inching down 0.18%.
Commodities: Crude Oil futures jumped 3.85% to $66.03 per barrel. Gold rose 0.26% to $1,882 per ounce.
Currencies: The US Dollar Index fell 0.22%.
Interest Rates: The 10-year US Treasury moved lower to 1.603%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The chart shows the US Dollar/Chilean Peso currency pair over the past 12-years (USD/CLP), along with an inverted chart of Copper futures. Chile is the largest Copper producer out there. As a result, the Chilean Peso is a good indicator for Copper prices. When the Chilean Peso is strengthening vs. the US Dollar, Copper prices tend to be rising and vice versa. In a comment to The Chart Report, Steve said, “A lot of people are expecting Copper to continue higher here. And I get it, it’s in a strong uptrend and breaking out of a decade-long base. But this correlation is as tight as it gets, and as long as USD/CLP it’s above 700 like it is now, Copper probably won’t be able to continue much higher.”
Quote of the Day
“Work gives you meaning and purpose, and life is empty without it.”
– Stephen Hawking
Top Links
Value to Growth Rotation is Slowing Down – StockCharts
Julius de Kempenaer examines the tug-of-war between Growth and Value.
The Latest #Bitcoin Activity: Willie Delwiche Assesses What’s Next – TD Ameritrade Network
In this clip, Willie Delwiche offers his perspective on the recent Bitcoin volatility.
Setups in Tech – Alpha Charts
Brian at AlphaCharts takes a look at some attractive setups in Tech.
Bitcoin Volatility Explodes – Bespoke
Bespoke puts the recent Crypto volatility into perspective.
Tim Apple – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the major technical development across the markets.
Top Tweets
$QQQ Mega-cap tech back in favor to start the week. $MSFT $FB $AAPL $AMZN
— Greg Rieben (@gregrieben) May 24, 2021
A growthy kind of day $IWF $SPY pic.twitter.com/4oTFz6SjbH
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 24, 2021
Everyone has a foot out the door:$QQQ had another mini-panic this month.
The market dropped a little and everyone ran for the exit.
The story of 2021: a rally that keeps renewing itself, with minor pullbacks shaking everyone out.
A textbook Bull market – follow the trend. pic.twitter.com/McInLMi2yc
— Macro Charts (@MacroCharts) May 24, 2021
it sounds cliché but all speculative assets that performed so well in the pandemic–SPACs, IPOs, Stay at Home Baskets and Bitcoin—peaked around the same time that US M2 Y/Y growth rate peaked and rolled over —classic anticipation of liquidity retrenchment in the future pic.twitter.com/nJkpLqjQhl
— Global_Macro (@Marcomadness2) May 23, 2021
The Russell 1000 value index, top, with various formerly high-flying plays, bottom. Despite isolated bubbles in the market popping & big corrections—from 100% down to 50%—they haven’t affected the overall market. This suggests to me that the market as a whole isn’t a bubble. pic.twitter.com/d40PNDy2SJ
— Jurrien Timmer (@TimmerFidelity) May 24, 2021
1oz of Gold at the end of that bull market for stocks throughout 2017 only got you 389oz of Copper. Near the height of the Covid crash, that same 1oz of Gold got you 777oz of Copper. We're now back to where that turned in 2018. "Déjà vu all over again", like yogi berra taught us? pic.twitter.com/ZIFJRoVUUK
— J.C. Parets (@allstarcharts) May 24, 2021
Gold Seasonal Chart: Gold's Best months are Ahead! $GOLD $GDX $GDXJ $HUI $CDNX #trends pic.twitter.com/92w7pOD5aB
— Hedgehog Trader ? (@HedgehogTrader) May 24, 2021
Keeping a close eye on Silver Junior miners. $SILJ
They have yet to take out the 2016 highs when the precious metals bull got started.
Yet more recently with gold's 9 month decline, they have held up extremely well, consolidating with Silver.
Should rip once silver starts. pic.twitter.com/L2BIkGKcRF
— Bob Loukas (@BobLoukas) May 24, 2021
The impressive rebound in #Bitcoin today doesn't change the msg from the chart. When volatility swells, it raises the hurdle required to call something "significant". pic.twitter.com/lclaSHYzt4
— RenMac: Renaissance Macro Research (@RenMacLLC) May 24, 2021
Lefty winning a major sure isn't a bad thing for stocks.@PhilMickelson pic.twitter.com/xFAXElIXXl
— Ryan Detrick, CMT (@RyanDetrick) May 24, 2021
You’re all caught up now. Thanks for reading!