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Today’s Summary
Friday, June 4th, 2021
Indices: US Stocks ended the week on a positive note with the Dow advancing 179 points or 0.52%. The S&P 500 and Nasdaq gained 0.88% and 1.47%, respectively. The Russell 2000 underperformed but still rose 0.31%.
Sectors: 10 of the 11 sectors closed higher. Technology led, gaining 1.92%. Utilities was the only sector to close lower, slipping just 0.15%.
Commodities: Crude Oil futures continued higher by 1.18% to a new high of $69.62 per barrel. Gold futures moved higher by 1.00% to $1,892 per ounce.
Currencies: The US Dollar Index fell 0.39%.
Interest Rates: The 10-year US Treasury yield dropped to 1.553%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$IBB Might be time for Biotech. $XBI looks similar but IBB is performing relatively better. Pretty straightforward. pic.twitter.com/T4syssMVbp
— Alan Cohen (@al_xdpg) June 4, 2021
Today’s Chart of the Day was shared by Alan Cohen (@al_xdpg). It’s a daily candlestick chart of the Biotech ETF, $IBB, over the past 10-months. The top stocks in this ETF include Amgen ($AMGN), Gilead ($GILD), Moderna ($MRNA), Illumina ($ILMN), and Vertex Pharmaceuticals ($VRTX). Biotech has been pretty disappointing since February. However, Alan points out that the technicals have improved, and $IBB looks poised for a new leg higher. For starters, it found support exactly where it needed to, at former resistance around $144. Secondly, it broke out of a 4-month downtrend line this week. Lastly, over the past 20-years, $IBB has enjoyed a bullish seasonal tailwind in the Summer months between May-September. Keep in mind, $IBB is still in the midst of a secular breakout that began around this time last year, so the weakness we’ve seen since February could just be a corrective phase within a longer-term uptrend.
Quote of the Day
“There are as many atoms in a single molecule of your DNA as there are stars in the typical galaxy. We are, each of us, a little universe.”
– Neil deGrasse Tyson
Top Links
Timeless Bitcoin – The Bear Traps Report
Larry McDonald draws an interesting comparison between Bitcoin and the Cocoa Bean in ancient Maya.
Energy Powers Small-Cap Leadership – Potomac Fund Management
Dan Russo outlines some key takeaways from the current market environment.
Stock Market & Bitcoin Analysis 6/4/21 – AlphaTrends.Net
Brian Shannon reviews this week’s price action and lays out some key levels to watch in the near term.
Typical June Trading: Any Early Gains Tend to Fade Especially After Mid-Month – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how stocks have historically performed throughout June.
Where Do We (Investors) Stand? – David Cox
In this quick video, David Cox highlights some noteworthy technical developments to be aware of.
Top Tweets
Weekly $SPX update: missed a new all-time closing high by less than 3 points. pic.twitter.com/ur0a8WGvGn
— Michael Turvey (@MikeTurvey_TDA) June 4, 2021
It's been three months since the S&P 500 last closed below its 50-DMA. pic.twitter.com/XNyf58eyJb
— Eddy Elfenbein (@EddyElfenbein) June 4, 2021
Here's how various asset classes performed this week using our ETF matrix. Energy sector $XLE and Brazil $EWZ up the most at ~7%. Read more in this week's Bespoke Report: https://t.co/ZWkkWrh7pB pic.twitter.com/dGGq704txZ
— Bespoke (@bespokeinvest) June 4, 2021
$XLE +6.8% this week. Easily the best sector. $XLV $XLY only ones negative. pic.twitter.com/btnrtHMzmw
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 4, 2021
Will energy require a lengthy “repair process” before establishing a major uptrend? pic.twitter.com/5axIJhBceE
— Mark Ungewitter (@mark_ungewitter) June 4, 2021
Nazdaq: another Sklarew box potential – market had bear trap on flush outside range (also cave fill repair on far left side of chart) Now, no stopping at the middle so can trade above the range by equal amount next week. pic.twitter.com/EY7cOjZ1eI
— Linda Raschke (@LindaRaschke) June 4, 2021
$AAPL AAPL catching a bid off our key Rising Support line late week: pic.twitter.com/IgLhJG9Iyr
— Leading Edge Charts (@InformedTrader) June 4, 2021
New Multi-year highs for Crude Oil. $76 next? pic.twitter.com/navrW9mTvX
— J.C. Parets (@allstarcharts) June 4, 2021
Silver finally honing in on long term resistance. An asset that likes poor employment data and stronger inflation. I'm sure the retail mob will join the party if/when it breaks above $30. pic.twitter.com/5kzrwo1OVK
— James Brodie CMT (@jamesrbrodie) June 4, 2021
Bitcoin's never-ending triangle: to me the decline from 65k still seems incomplete, with a 5th wave back to 30k (or even 23k) still looming. The analog to meme stocks fits this pattern. We’ll find out soon enough, but either way my sense is that most of the decline is behind us. pic.twitter.com/rk17LAd7Wf
— Jurrien Timmer (@TimmerFidelity) June 4, 2021
AMC and Gamestop account for half of the Russell 2000's 15% gain this year pic.twitter.com/snOmnfVcUX
— Not Jim Cramer (@Not_Jim_Cramer) June 4, 2021
Nothing is new
1998 pic.twitter.com/KubF4nsriy
— Brian Sullivan (@SullyCNBC) June 4, 2021
You’re all caught up now. Thanks for reading!