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Today’s Summary
Monday, June 7th, 2021
Indices: US Stocks were mixed to start the week. The Dow fell 126 points or 0.36%. The S&P 500 was flat (0.08%), while the Nasdaq rose 0.49%. The Russell 2000 outperformed, gaining 1.43%.
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining 0.94%. Materials lagged, falling 1.22%.
Commodities: Crude Oil futures fell 0.56% to $69.23 per barrel. Gold futures rose 0.36% to $1,899 per ounce.
Currencies: The US Dollar Index slipped 0.18%.
Interest Rates: The 10-year US Treasury yield rose to 1.567%.
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 in a note Arthur Hill (@ArthurHill). It’s a daily bar chart of the 5G ETF, $FIVG, over the past year. The top stocks in this ETF include NXP Semiconductors ($NXPI), Analog Devices ($ADI), Ericsson ($ERIC), Qualcomm ($QCOM), and Nokia ($NOK). There aren’t too many Tech-related ETFs trading at all-time highs right now, however, Arthur points out that $FIVG is one of the few exceptions. In the note, Arthur explains, “FIVG surged from early November to mid-February and then consolidated with an Ascending Triangle into early June. This is a classic bullish continuation pattern where the upper line represents overhead supply (resistance) and the lower line represents rising demand (higher low). Overall, this is a consolidation within an uptrend and the breakout signals a continuation of that uptrend. There could be some backing and filling, but I would stay bullish as long as 35 holds on a closing basis.” Check out the full note here.
Quote of the Day
“What do you call a stock that’s down 90%? A stock that was down 80% then got cut in half.”
– David Einhorn
Top Links
Global Stocks and Commodities Break Out – Potomac Fund Management
Dan Russo shares his thoughts on the breakout in international stocks and a few other key technical developments.
Do These Divergences Matter? – All Star Charts
JC Parets examines some potentially bearish divergences.
A Conversation with Stan Weinstein – Renaissance Macro Research
Here’s a great podcast with Jeff deGraaf and Stan Weinstein. They discuss the art of tape reading and more.
Why Lower Volatility, Higher Equity Prices Lie Ahead – Schaeffer’s Investment Research
Todd Salamone explains why the VIX is poised to continue lower in the near-term.
The Future of Bear Markets – A Wealth of Common Sense
Ben Carlson argues that Bull & Bear market cycles could be faster in the future.
Top Tweets
Today: The S&P hasn’t traded in a range larger than 1% for 11 straight days.
Also today: $AMC stock has traded in ranges >10% for 10 straight days.
?
— Callie Cox (@callieabost) June 7, 2021
$SPX structural bull market:
1) Trending at 12% annualized pace
2) Price extended vs. channel range
3) Youthful advance (15 months off cyclical bottom)
4) Depth-to-mid is -20% over 3 months
5) Depth-to-bottom is -32% over 12 monthsKeeping it simple. #AssetAllocation pic.twitter.com/7H8d8C3a2J
— Mark Ungewitter (@mark_ungewitter) June 7, 2021
$SPX with Fib extensions from 1987 crash pic.twitter.com/YcRygAvxzE
— Steven Strazza (@sstrazza) June 7, 2021
$IWC Micro Caps
after spending +3mos going sideways, digesting gains, now looking like the smallest co's want to test their Mar highs
not exactly bearish imo pic.twitter.com/1o46BxPZgU
— Christian Fromhertz (@cfromhertz) June 7, 2021
$XOP is +94% since it cleared the 200-sma last Nov.
It's also had a 10% drawdown or more every month since then, on the way up.Big moves don't always go in straight lines – pic.twitter.com/Q2SIQ4ZMKs
— Larry Tentarelli, Blue Chip Daily (@LMT978) June 7, 2021
If you own a forest and a lumber mill you would be best advised to hedge your production. Lumber prices have topped out and will head much lower. $LB_F pic.twitter.com/LiwKKZM2Pu
— Peter Brandt (@PeterLBrandt) June 7, 2021
#lumber #homebuilders – Study from 6/2. pic.twitter.com/Dr8MIjoUpP
— Nautilus Research (@NautilusCap) June 7, 2021
$XHB's relative performance to $IYR
The bottom panel of this 2-panel chart is informative… pic.twitter.com/OO3IW4oVnY— Carter Braxton Worth (@CarterBWorth) June 7, 2021
$VGK vs. $SPY Been a long time since Europe's been the leader. May be changing pic.twitter.com/5CMk1xzRR4
— Gregory Krupinski (@G_krupins) June 6, 2021
Looks like $EZU is getting the upper-hand versus $SPY. Price & momentum trends moving in favor of Eurozone and away from US. pic.twitter.com/xYkv7H773q
— Willie Delwiche (@WillieDelwiche) June 7, 2021
Biogen $BIIB up over 40% today.
If it holds this price by the end of the month it would signal a breakout from an 8YR rectangle.
Wow. pic.twitter.com/kcMZVZRfeo
— Brandon Beylo (@marketplunger1) June 7, 2021
Bitcoin continues to consolidate below support.
Potential for this decline to accelerate as the short-term uptrend line breaks, but more importantly if 29,000 breaks where prices based in January.
Below that, a retest of the big boy breakout at 20,000 seems likely. pic.twitter.com/ebg1KaKSug
— Tom Bruni, CMT (@BruniCharting) June 7, 2021
— Arun S. Chopra CFA CMT? (@FusionptCapital) June 7, 2021
You’re all caught up now. Thanks for reading!