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Today’s Summary
Friday, May 27th, 2022
Indices: Nasdaq 100 +3.30% | Russell 2000 +2.70% | S&P 500 +2.47% | Dow +1.76%
Sectors: All 11 sectors closed higher by more than 1%. Consumer Discretionary led, for the third straight day, gaining +3.43%. Consumer Staples lagged but still rose +1.16%.
Commodities: Crude Oil futures moved higher by +0.86% to $115.07 per barrel. Gold futures rose +0.53% to $1,852 per ounce.
Currencies: The US Dollar Index slipped -0.12%.
Crypto: Bitcoin fell -1.45% to $28,770. Ethereum dropped -2.48% to $1,746.
Interest Rates: The US 10-year Treasury yield inched lower by 2.743%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Yo, Charts: Gold relative to Bitcoin. BIG BASE & B/out pic.twitter.com/CHy6rSCARX
— da Chart Life (@daChartLife) May 27, 2022
Today’s Chart of the Day was shared by John Roque (@daChartLife). It’s a ratio chart of Gold vs. Bitcoin over the past year and a half. Bitcoin is on track for its ninth consecutive down week for the first time in its history. It’s currently trading at a fresh 52-week low of 28,300, which is below crucial support around $29-30k. John points out that even Gold is breaking out relative to Bitcoin, which is notable because Gold hasn’t been particularly strong lately either. This ratio has formed an 18-month base in favor of Gold. What’s the point in buying Bitcoin at these prices if even the weakest assets are breaking out relative to it?
Quote of the Day
“It’s easier to win an argument with a genius than an idiot.”
– Gurwinder Bhogal
Top Links
Was That The Low? – The Chart Report
In this week’s show, Steve Strazza and I discuss this week’s rebound.
It’s Over – Bespoke
Bespoke points out that the S&P 500 finally snapped its seven-week losing streak.
Heavy Metal – Potomac Fund Management
Dan Russo shares his outlook on Metals.
Fill the Gap Podcast with Bill Miller IV, CMT, CFA – CMT Association
In this podcast, The CMT Association sits down with money manager, Bill Miller IV.
Stocks Weaker After Memorial Day Recent Years – Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed after Memorial Day.
Top Tweets
The S&P 500 snapped a 7-week losing streak with the strongest week since November 2020. pic.twitter.com/ULuCrYlIf3
— Michael Batnick (@michaelbatnick) May 27, 2022
The S&P 500's 7-week losing streak is about to end with a bang.
Remember, this has only happened 3 other times in history and two of them saw 33% returns a year later (1970 and 1980).
Of course, to keep things honest after the one in 2001 was rough sledding. pic.twitter.com/MpOryNV5VE
— Ryan Detrick, CMT (@RyanDetrick) May 27, 2022
short-term levels: ☑️
long-term levels: still some work to do4150-4170 is going to be a big one to push through, but it would certainly add more bullish evidence to the overall picture.
Day by day. pic.twitter.com/JeRgM1dHKP
— Ian McMillan, CMT (@the_chart_life) May 27, 2022
DOW 34300 not out of the question for June/July as these weeklies turn back up. pic.twitter.com/UFwYcKVm3s
— Linda Raschke (@LindaRaschke) May 27, 2022
Yesterday’s back-to-back 80% upside volume is constructive, but more evidence is needed to confirm an important bottom. pic.twitter.com/4Tvr5hnFxJ
— Mark Ungewitter (@mark_ungewitter) May 27, 2022
$IWM small caps are up on the month pic.twitter.com/QpTig58KNQ
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 27, 2022
Here's the most important chart for next week.. Will USD/JPY hold the breakout point? pic.twitter.com/xPLy1PRg3M
— Scott Brown, CMT (@scottcharts) May 27, 2022
Bitcoin came into this week already down for the most consecutive weeks in its entire history: 8 Weeks in a row. Now they're trying to make it 9. Do I hear 9 straight weeks? Going once, going twice….#bitcoin pic.twitter.com/mUcL7Q3c0Y
— J.C. Parets (@allstarcharts) May 27, 2022
The past two counter trend rallies you also saw $BTC move up with $SPY, not this time. $BTC has been a decent gauge from risk appetite pic.twitter.com/Dx6H0J9R7l
— Bailey.Baxter2020 (@BBaxter2020) May 27, 2022
With $ETH looking like it's going to take out this 1720 support zone and $BTC trading below 29k, is there any bull case for crypto left? pic.twitter.com/MDo1mx3QTJ
— Steven Strazza (@sstrazza) May 27, 2022
Wall Street: April has historically been the strongest month of the year for stocks
S&P 500: lol (loses 8.8%)
Wall Street: …OK, sell in May and go away?
S&P 500: lol (gains 0.4% on a last-ditch rally)
— Callie Cox (@callieabost) May 27, 2022
You’re all caught up now. Thanks for reading!