Daily Chart Report ? Thursday, May 13th, 2021
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Today’s Summary
Thursday, May 13th, 2021
Indices: US Stocks recouped some of yesterday's losses in today's session, with the Dow rising 434 points or 1.29%. The S&P 500 and Nasdaq closed higher by 1.22% and 0.72%, respectively. The Russell 2000 outperformed rising 1.68%.
Sectors: 10 of the 11 sectors closed higher. Utilities led, rising 1.93%. Energy was the only sector that closed lower, falling 1.22%.
Commodities: Crude Oil futures dropped 3.42% to $63.82 per barrel. Gold futures were flat (0.07%) and continue to trade around $1,824 per ounce.
Currencies: The US Dollar Index was flat (0.06%).
Interest Rates: The 10-year US Treasury fell to 1.659%.
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 Willie Delwiche (@WillieDelwiche). It's a chart of the S&P 500 over the past four years (dark blue), along with the NAAIM Exposure Index (light blue). The S&P 500 hasn't even pulled back 5%, and yet this sentiment indicator just plunged to its lowest level since March 2020. As Willie points out, this marks the third-largest two-week decline in the history of the NAAIM Exposure Index. So, does this mean sentiment has been reset and a tradeable bottom is in? In a comment to The Chart Report, Willie said, "This drop in exposure was probably a result of active fund managers being overweight Tech and having to unwind those positions. So, while this is the lowest exposure we've seen in a year, I think it could fall even further before sentiment has truly been reset and a tradeable bottom is in."
Quote of the Day
“Life can only be understood backwards, but it must be lived forwards.”
– Søren Kierkegaard
Top Links
Breadth Metrics are Bent, Not Broken, As Equities Pull Back - Potomac Fund Management
Dan Russo checks on market breadth after this week's pullback.
Bullish Sentiment Down Bad - Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
Renaissance Macro Research Founder on Why Money Has Moved Out of Tech - CNBC
In this clip, Jeff deGraaf of Renaissance Macro shares his thoughts on the recent weakness in the Technology sector.
Door is Open For Developed International Stocks - LPL Financial Research
The team at LPL Financial Research explains why Developed International Stocks are beginning to look attractive relative to US Stocks.
Fact Check: This Bitcoin Selloff is Nothing Like the Others - Oliver Renick
Here's a good read from Oliver Renick, in which he discusses how Bitcoin lives and dies by momentum.
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Top Tweets
$NDX down 4 wks in a row, which is not that unusual. Surprisingly, it has only been down a 5th week twice since 03/09 - in 2011 and 2012 (6 and 7 wks, respectively). Current selloff is 7% vs ~10% in those instances pic.twitter.com/uZYIn6jXJZ
— Urban Carmel (@ukarlewitz) May 13, 2021
You’re all caught up now. Thanks for reading!