Sponsored By:
Today’s Summary
Wednesday, May 5th, 2021
Indices: US Stocks were mixed in today’s session. The Dow rose 97 points or 0.29%. The S&P 500 closed flat (0.07%), while the Nasdaq fell 0.37%. The Russell 2000 closed lower by 0.31%.
Sectors: 5 of the 11 sectors closed higher. Energy led by a wide margin, gaining 3.23%. Utilities lagged, dropping 1.69%.
Commodities: Crude Oil futures fell 0.58% to $65.31 per barrel. Gold futures rose 0.60% to $1,787 per ounce.
Currencies: The US Dollar Index was unchanged.
Interest Rates: The 10-year US Treasury slipped to 1.570%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$ARKK 3rd touch at 38.2% retracement of move from Pandemic low to February top. This time also at the 200 day SMA. Breakdown or bounce? pic.twitter.com/gNpQYTEZXC
— Greg Harmon, CMT/CFA, President Dragonfly Capital (@harmongreg) May 5, 2021
Today’s Chart of the Day was shared by Greg Harmon (@harmongreg). It’s a daily candlestick chart of the popular ARK Innovation ETF, $ARKK, over the past 14-months. This ETF, along with its acclaimed manager, Cathie Wood, rose to the spotlight last year as it surged off the pandemic lows. The top holdings include high-growth companies like Tesla, Teledoc, Roku, Square, Shopify, and Zillow. Therefore, it’s no surprise that it has come under pressure lately as growth has fallen out of favor relative to value. $ARKK currently sits 28% off the February highs. But as Greg points out, $ARKK is at a crucial make-or-break point here. It’s testing the 38.2% Fibonacci retracement of the post-pandemic rally for the 3rd time, along with the 200-day moving average. $ARKK will need to catch a bid soon, or things could get even uglier for this already bruised ETF.
Quote of the Day
“Our passion for learning is our tool for survival.”
– Carl Sagan
Top Links
2020 Winners’ 200-Day Takeout – Bespoke
Bespoke points out that some of last year’s high-flying ETFs are breaking below their 200-day moving averages, including $TAN, $ICLN, $IPO, and $ARKK.
Bearish or Bullish: It’s A Hot Mess Out There – All Star Charts
In this episode of Bullish or Bearish, JC Parets and Julie Alexandria discuss the choppy market environment and some of the opportunities outside of US Stocks.
Using Copper as an Indicator of Market Strength – Schaeffer’s Investment Research
Rocky White analyzes the relationship between Copper prices and the S&P 500.
Stock Market Analysis Wednesday, May 5th, 2021 – Brian Shannon
In this quick video, Brian Shannon gives a mid-week update on price action.
Transportation Stock Indices Send Bullish Message About Global Economy – Kimble Charting Solutions
Chris Kimble weighs in on the strength in Transportation stocks.
Top Tweets
That felt every bit like a 7 bps move. $SPX
— Frank Cappelleri (@FrankCappelleri) May 5, 2021
The Nasdaq is trailing the S&P 500 for the seventh day in a row. pic.twitter.com/0TP4kIwqxa
— Eddy Elfenbein (@EddyElfenbein) May 5, 2021
this mean reversion makes sense IMO – still plenty more to go if it wants to pic.twitter.com/WTnmVVzlYE
— BostonCharts (@bostonchaahhts) May 5, 2021
New high in R/S: pic.twitter.com/4bpl05aTN3
— Walter Deemer (@WalterDeemer) May 5, 2021
New relative high in materials and financials….one is late cycle, the other is decisively NOT late cycle. pic.twitter.com/gA6NnJdW3P
— RenMac: Renaissance Macro Research (@RenMacLLC) May 5, 2021
Who's got this one right? Copper/Gold remains firm, yet yields are agnostic. Given the strength in Financials both domestically and in Europe… we're betting yields ultimately resolve this consolidation higher. @StrategasRP $XLF $Copper pic.twitter.com/rpWb3AIHS2
— Chris Verrone (@verrone_chris) May 5, 2021
Look at a chart of what $FCX has done since Jan 2020 and you might think it mined crypto not copper. pic.twitter.com/7uDq6mITOT
— Willie Delwiche (@WillieDelwiche) May 5, 2021
3Y correlation of Freeport-McMoran (FCX) & Copper pic.twitter.com/au9XGcqF1r
— Ryan Kunzel, CFA, CPA, CA (@RyanKunzel) May 2, 2021
Seeing crude oil $WTIC transitioning from accumulation to consolidation back to accumulation phase. "Don't confuse the top of the page with resistance." pic.twitter.com/3Daf777fTF
— David Keller, CMT (@DKellerCMT) May 5, 2021
$URA Nice breakout in Uranium/Nuclear energy.
A lot of nice movers here and still very few talking about it.
That's the kind of market I like to be involved in. $CCJ $CCO.CA $UEC $NXE $DML.CA pic.twitter.com/yYifBHOTcS
— Greg Rieben (@gregrieben) May 5, 2021
Update: The Flippening
Imagine going parabolic against #bitcoin. lol.$ETH $BTC pic.twitter.com/I9ypUJbZEp
— J4 (@J4_doji) May 4, 2021
Guys $WOOD is getting close to flippening Wood pic.twitter.com/BhXncBElaz
— Joe Weisenthal (@TheStalwart) May 5, 2021
You’re all caught up now. Thanks for reading!