Daily Chart Report ? Thursday, April 29th, 2021
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Today’s Summary
Thursday, April 29th, 2021
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 240 points or 0.71%. The S&P 500 and Nasdaq rose 0.68% and 0.22%, respectively. The Russell 2000 underperformed, slipping 0.38%.
Sectors: 9 of the 11 sectors closed higher. Communications led, gaining 2.77%. Health Care lagged, falling 0.40%.
Commodities: Crude Oil futures moved higher by 1.80% to $65.01 per barrel. Gold futures slipped 0.32% to $1,768 per ounce.
Currencies: The US Dollar Index was flat (0.04%).
Interest Rates: The 10-year US Treasury rose to 1.640%.
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 Arun Chopra (@FusionptCapital). Commodities have been trading like Cryptocurrencies recently. Lumber, Copper, Corn, Soybeans, Iron Ore, you name it, some of the biggest inputs to our global economy are surging to multi-year highs. There has been a lot of chatter about a potential super-cycle in commodities, and by the looks of these charts, it appears we could be in the midst of one. Generally speaking, investors don’t seem to have much exposure to Commodities as an asset class. And why would they? Commodities have been dead money for the past decade up until recently. They don’t yield income like other asset classes, so they’ve been relatively unattractive with interest rates as low as they have been. Also, they require more tactical management than Stocks or Bonds and therefore have not been popular in this era of passive investing. In a comment to The Chart Report, Arun said, “Given how long commodities have been in the dumps, a longer-term cycle, often referred to as a supercycle, is not out of the question. For now, it’s clear they’ve come a long way in a short period of time, something we haven’t seen since the last big cycle in 2003-2006.”
Quote of the Day
“Risk is good. Not properly managing your risk is a dangerous leap.”
– Evel Knievel
Top Links
Breadth is Not the Place to Start a Bear Case – Potomac Fund Management
Dan Russo takes a look at market breadth from multiple angles.
Bulls Get The Jitters – Bespoke
Bespoke points out that bullish sentiment dropped in this week’s AAII Sentiment Survey.
Commodity Bulls Riding High on US Dollar Weakness – See it Market
Chris Kimble examines the relationship between Commodities and the US Dollar.
Seasonality Show Weakness Ahead for Financials – StockCharts.com
Julius de Kempenaer analyzes sector seasonality and relative strength.
Stock Market Returns Are Anything But Average – A Wealth of Common Sense
Here’s a good read for Financial Advisors. Ben Carlson explains that annual S&P 500 returns are a lot more dispersed than you might think.
Join us at the 2021 CMT Americas Summit on April 29th & 30th
Featuring a slate of industry-leading analysts, the Americas Summit is uniquely adapted to a digital-first experience. This event will take place fully online, covering four distinct themes over two days and featuring experts in each thematic topic presenting each day.
The four themes will encompass US equity markets as well as key global indices, Digital and Fiat currencies, Treasury yields and rates as they impact other asset classes, and the Commodities space. Expect to leave with cutting-edge tools, trading strategies, and actionable insights to improve your investment decisions.
Top Tweets
$ETHUSD continues to show nice follow-through and strong rel-strength against $BTC pic.twitter.com/e46G4nzMOa
— Alex Barrow (@MacroOps) April 29, 2021
You’re all caught up now. Thanks for reading!