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Today’s Summary
Tuesday, May 25th, 2021
Indices: US Stocks closed slightly lower in today’s session with the Dow slipping 82 points or 0.24%. The S&P 500 fell 0.21%, while the Nasdaq was more or less flat (0.03%). The Russell 2000 underperformed, falling 0.97%.
Sectors: 4 of the 11 sectors closed higher. Consumer Discretionary led, rising 0.32%. Energy lagged, dropping 2.03%.
Commodities: Crude Oil futures were flat (0.09%), and continue to trade around $65.99 per barrel. Gold futures rose 0.72% to a four-month high of $1,898 per ounce.
Currencies: The US Dollar Index slipped 0.18% to a four-month low.
Interest Rates: The 10-year US Treasury yield fell to 1.559%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Where to next for crude oil? Back to $60 or a run to the mid $70's?#oil #OOTT pic.twitter.com/uhWPPHj3yj
— Greg Rieben (@gregrieben) May 25, 2021
Today’s Chart of the Day was shared by Greg Rieben (@gregrieben). It’s a weekly candlestick chart of WTI Crude Oil futures over the past three years. Greg points out that Crude Oil is testing an important level of around $66 per barrel. This level has acted as resistance three times over the past two years. Generally speaking, the more times a level is tested, the more likely it is to break through. Think of it like hitting a brick wall with a sledgehammer. You might not break through the wall on the first attempt, but each time you hit it, the wall becomes weaker and weaker until you eventually smash through it. It’s also worth noting that Crude Oil’s bullish seasonal pattern doesn’t peak until late September. So, a move higher throughout the Summer months would be in line with seasonality. Will the fourth time be the charm for Crude Oil? Or, will $66 act as resistance once again? Stay tuned!
Quote of the Day
“The greatest value of a picture is when it forces us to notice what we never expected to see.”
– John Tukey
Top Links
Broad Weakness in the Consumer Discretionary Sector – Potomac Fund Management
Dan Russo analyzes the strongest/weakest sectors of the S&P 500.
Most of ARKK Bouncing But Still Down Big – Bespoke
Bespoke gives an update on the popular ARK Innovation ETF, $ARKK.
Can Large Caps Tech Stocks Lead the Market Higher? – StockCharts.com
Mish Schneider shares her thoughts on the Nasdaq and the Russell 2000.
King Dollar About to Experience a Great Fall? – Kimble Charting Solutions
Chris Kimble examines the big-picture outlook for the US Dollar.
Short The Small-Caps – All Star Charts
JC Parets lays out a potential short idea on the Russell 2000 ETF, $IWM.
Top Tweets
Active managers have their lowest $SPY allocation since Mar 2020 and Dec 2018. pic.twitter.com/8StPirKWDo
— Brian G (@alphacharts) May 25, 2021
Note the roll-over from the highest levels in a year on the buy (to open) put/call volume ratio on components of the $NDX. Bullish take away. pic.twitter.com/SX48GpPF8d
— Todd Salamone (@toddsalamone) May 25, 2021
Consumer Discretionary sector having worst month relative to S&P 500 since 2009
[Past performance is no guarantee of future results] pic.twitter.com/PfNnpY4pAG— Liz Ann Sonders (@LizAnnSonders) May 25, 2021
Could it finally be time for crude oil to follow most other commodities and move to a new 52-week high?
If it does, there is a lot of room for energy stocks to improve after years of underperformance. pic.twitter.com/81FaRZqbe9
— Ryan Detrick, CMT (@RyanDetrick) May 25, 2021
It is our judgement, that this time around, it won’t be “to the penny”.
We think rates break down here. Buy Treasuries. $TLT pic.twitter.com/4GzGk8sObS— Carter Braxton Worth (@CarterBWorth) May 25, 2021
what if this was an nasty failed breakout in the Copper/Gold Ratio? pic.twitter.com/otE9J7iIFX
— J.C. Parets (@allstarcharts) May 25, 2021
$GDX looks like it's setting up again. pic.twitter.com/xEX3AmjtOV
— Brian Lund (@bclund) May 25, 2021
Bullish pattern for $GDX. You hate to see it. pic.twitter.com/VV6M2IOQiU
— Dow (@mark_dow) May 25, 2021
Ford – Tesla relationship at an interesting juncture that goes beyond just suburbanite truck preferences. (chart courtesy of @sstrazza) $F $TSLA pic.twitter.com/i9wtnaT7LA
— Willie Delwiche (@WillieDelwiche) May 25, 2021
?In our SPAC-diluted world, at least some of them have a sense of humor.
?An upcoming example will be called: “Just Another Acquisition”
?Blank Check companies are being named like horses at the track.
?Not sure if we should laugh or cry. pic.twitter.com/C7XZzEqoD7
— ??????? ??? ??? (@BrandonVanZee) May 25, 2021
You’re all caught up now. Thanks for reading!