Daily Chart Report ? Thursday, May 6th, 2021
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Today’s Summary
Thursday, May 6th, 2021
Indices: US Stocks closed higher in today's session with the Dow Jones Industrial Average gaining 318 points or 0.93%. The S&P 500 and Nasdaq rose 0.82% and 0.37%, respectively. The Russell 2000 underperformed, closing unchanged.
Sectors: All 11 sectors closed higher. Financials led, gaining 1.49%. Health Care lagged, but still managed to close higher by 0.13%.
Commodities: Crude Oil futures fell 1.17% to $64.86 per barrel. Gold futures powered higher by 1.75% to $1,816 per ounce.
Currencies: The US Dollar Index dropped 0.41%.
Interest Rates: The 10-year US Treasury was unchanged at 1.570%.
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 Row Investing (@RowInvesting). With Growth stocks getting smoked this week, it's probably a good time to review Stage Analysis. Stage Analysis was popularized by Stan Weinstein in his 1980's book, Stan Weinstein's Secrets for Profiting from Bull and Bear Markets. The four main stages are simply; 1.) Base, 2.) Uptrend, 3.) Top, and 4.) Downtrend. Stage 1 is the base-building phase in which institutions accumulate a position. Stage 2 is the rip-roaring uptrend phase in which the public jumps on the bandwagon. Stage 3 is when price begins to lose momentum and distribution begins. Finally, Stage 4 is when the downtrend forms and price enter into a sustained bear market. Obviously, it isn't so clear-cut in real-time. But, it does help you tune out the noise and give you an idea of the typical lifecycle of a trend. As @RowInvesting points out, a lot of last year's high-fliers are below a declining 30-week moving average and appear to be entering into that painful Stage 4. So, be careful buying dips on last year's winners!
Quote of the Day
“The most contrarian thing of all is not to oppose the crowd but to think for yourself.”
– Peter Thiel
Top Links
DeFi & Technical Analysis | My Conversation w/ Jim Bianco, CMT - All Star Charts
Here's a great podcast in which JC Parets and Jim Bianco discuss the Decentralized Finance movement or DiFi.
Individuals, Writers and Managers All Still Bullish - Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
What Does it Mean to be Extended? - Potomac Fund Management
Dan Russo demonstrates how to use Z-Scores to quantify how "extended" prices are.
While Everything is Going Digital, This Stock is Breaking Higher - StockCharts.com
Julius de Kempenaer takes a look at the strength in the Materials sector.
Typical May Trading: A Roller Coaster Ride - Almanac Trader
Seasonality expert, Jeff Hirsch examines how Stocks typically fare throughout May.
Top Tweets
Whole lot of technicians all over this one.
Didn't want Lumber to surpass it... $GLD $GDX pic.twitter.com/SbNytGhMh6— J4 (@J4_doji) May 6, 2021
You’re all caught up now. Thanks for reading!