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Today’s Summary
Tuesday, May 4th, 2021
Indices: US indices closed lower in today’s session with the exception of the Dow, which managed to close positive by just 20 points or 0.06%. The S&P 500 fell 0.67%, while the Nasdaq dropped 1.88%. The Russell 2000 moved lower by 1.28%.
Sectors: 5 of the 11 sectors closed higher. Materials led, gaining 1.09%. Technology lagged, dropping 1.79%.
Commodities: Crude Oil futures moved higher by 1.86% to $65.69 per barrel. Gold futures fell 0.88% to $1,776 per ounce.
Currencies: The US Dollar Index rose 0.35%.
Interest Rates: The 10-year US Treasury slipped to 1.594%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SMH was residing just below the 100DMA 15 minutes into the close and them WAMMY! Finished slightly above 100DMA by the closing bell!
Either opens the door to more selling tomorrow or proves support? pic.twitter.com/fB6Jx0w6OH
— Seth Golden (@SethCL) May 4, 2021
Today’s Chart of the Day was shared by Seth Golden (@SethCL). It’s a chart of the Semiconductor ETF, $SMH, over the past year. This is a key industry group to watch in the near term. Semis have been in a solid uptrend since the March 2020 low. However, their impressive rally has stalled out in recent months. As you might know, Semiconductors are the chips that are found in virtually every electronic device from iPhones to dishwashers. Due to their widespread use, Semiconductor stocks often act as a leading indicator for both the technology sector and the broader market. Their leadership off the March 2020 low was reassuring to bulls as the market recovered last year, but this recent weakness does not exude confidence. As Seth points out, $SMH bounced off the 100-day moving average in the final minutes of today’s session. But overall, Semis continue to look vulnerable here, so keep an eye on how they behave in the remainder of the week.
Quote of the Day
“The greatest teacher, failure is.”
– Yoda
Top Links
Leadership Begins to Emerge – Potomac Fund Management
Dan Russo points out that Materials and Financials are emerging as sector leaders.
Short The Nasdaq (and Copper too?) – All Star Charts
JC Parets examines potential short opportunities in the Nasdaq 100 and Copper.
What’s Next for the Nasdaq 100 – Charting the Course
BostonCharts models three possible scenarios for the Nasdaq 100.
RenMac Legends Podcast: A Conversation with Ned Davis – Renaissance Macro Research
Here’s a great conversation between two respected technical analysts, Jeff deGraaf and Ned Davis.
Ethereum Surges and Then Some – Bespoke
Bespoke takes a look at the recent strength in Ethereum.
Top Tweets
This looks to be the sixth day in a row that the Nasdaq has trailed the S&P 500.
— Eddy Elfenbein (@EddyElfenbein) May 4, 2021
$QQQ momentum divergence confirmed pic.twitter.com/EtSBjRBcNP
— Jack (@alphacharts365) May 4, 2021
“We are reiterating our cautious outlook .. and continue to expect the S&P 500 to test ~3,950. .. Semiconductors, which rallied 165% off the March 2020 lows, are now threatening multi-year relative trend breaks.” – @jkrinskypga pic.twitter.com/ms6QAcF7lv
— Carl Quintanilla (@carlquintanilla) May 4, 2021
Semis $SMH relative to $SPX testing 200-day moving average for the first time since June 2019, and potentially undercutting March 2021 low. #notsobullish pic.twitter.com/qFV9ISK9Wz
— David Keller, CMT (@DKellerCMT) May 4, 2021
Trouble in tech-land…#techstocks $QQQ pic.twitter.com/gPzdlJVXfg
— Greg Rieben (@gregrieben) May 4, 2021
Lowest we've seen Tech in our sector rankings in nearly a decade… take note. @StrategasRP $XLK $QQQ pic.twitter.com/DzQeI1KqsU
— Chris Verrone (@verrone_chris) May 4, 2021
Nasdaq weakness was tied to rising interest rates for many months. This latest tick lower for the Nasdaq has happened even with Treasury yields flat to down. pic.twitter.com/sNkWagZCvj
— Bespoke (@bespokeinvest) May 4, 2021
Weekend review still gives the nod to one of the more dynamic charts out there.. $DIA $QQQ #monthly pic.twitter.com/LrffgsBLFs
— Dan J. Gorghuber, CMT (@Futures_Runner) May 4, 2021
Energy vs Solar $XLE $TAN pic.twitter.com/S6frDhECGa
— Pratyush Tulsian (@PrattyCharts) May 4, 2021
This might be the most important development today ?
– Crude (WTI) is pushing +1.5% to $65.50
– clearing $68 sets path towards $80 oilGreat news for Energy stocks $XLE $OIH $KLXE $XOP
???⛽️⛽️⛽️⛽️Get the "first word" at https://t.co/qAi6qVLBXt @fs_insight pic.twitter.com/d4PYqC9ySS
— Thomas Lee (@fundstrat) May 4, 2021
The price of Lumber closed at another all-time high, more than quadrupling over the last year. pic.twitter.com/GDXqp2fB8c
— Charlie Bilello (@charliebilello) May 3, 2021
You’re all caught up now. Thanks for reading!