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Today’s Summary
Wednesday, May 26th, 2021
Indices: US Stocks moved higher in today’s session. The Dow was more or less flat, changing just 11 points or 0.03%. The S&P 500 and Nasdaq rose 0.19% and 0.59%, respectively. The Russell 2000 outperformed by a wide margin, gaining 1.97%.
Sectors: 8 of the 11 sectors closed higher. Consumer Discretionary led, rising 0.95%. Health Care lagged, falling 0.58%.
Commodities: Crude Oil futures rose 0.21% to $66.21 per barrel. Gold futures inched higher 0.17% to $1,901 per ounce.
Currencies: The US Dollar Index gained 0.42%.
Interest Rates: The 10-year US Treasury yield rose to 1.583%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
is #Ethereum $ETH.X a buy here?
not for me.. pic.twitter.com/2DuZBsGyPR— Brian Shannon, CMT (@alphatrends) May 26, 2021
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It’s a 2-hour candlestick chart of Ethereum ($ETHUSD). Brian reminds us that trying to catch a falling knife often ends in pain. Ethereum peaked around $4,330 on May 11th before tumbling as much as 60% in less than two weeks’ time. As of writing, Ethereum has viciously rebounded about 60% from the low just three days ago. For short-term traders, this sort of volatility is a dream. But to the new class of hodlrs out there, this is a lesson in the law of percentages. Brian points out that the VWAP (Volume Weighted Average Price) from the peak is lurking slightly above price right now. In other words, there is potential overhead supply waiting to meet eager dip buyers. As we mentioned last week, Cryptocurrencies live and die by momentum. Once that momentum is gone, the script flips from “Buy the Dips” to “Sell the Rips.”
Quote of the Day
“Successful tape reading is a study of force; it requires the ability to judge which side has the greatest pulling power and one must have the courage to go with that side.”
– Richard Wyckoff
Top Links
January Trend Back in Play – Bespoke
Bespoke points out that heavily shorted stocks, like $GME and $AMC were up big today.
Semiconductors Index: Bull/Bear Tug-O-War At Important Price Resistance – Kimble Charting Solutions
Chris Kimble examines an important level in the Semiconductors Index, $SOX.
Choppy, With a Chance of Volatility – Potomac Fund Management
Dan Russo highlights some of the most important technical developments out there right now.
Growth vs. Value – Drew Wells
Drew Wells offers a somewhat contrarian perspective on Growth vs. Value.
Memorial Day Trading: Generally Dull Before Long Weekend – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how stocks have historically performed before Memorial Day.
Top Tweets
Happy birthday, Papa Dow!
Charles Dow founded the Dow Jones Industrial Average 125 years ago today.
•The Dow started with 12 companies, most of which don’t exist anymore, though General Electric was in the original 12.
1/2
— Ryan Detrick, CMT (@RyanDetrick) May 26, 2021
Happy 125th Birthday to king of blue-chip indices & great great granddaddy of business of indexing—venerable Dow Jones Industrial Average®—Charles Dow began calculating DJIA on May 26, 1896 as an average of 12 industrial companies@SPGlobal @SPDJIndices pic.twitter.com/PvFYyHKrQN
— Liz Ann Sonders (@LizAnnSonders) May 26, 2021
Back to a major behavioral inflection point at $221 as they have everyone trapped in between. $IWM pic.twitter.com/yezkIt6bWA
— Ian McMillan, CMT (@the_chart_life) May 26, 2021
Real Estate and Utes, both vs. $SPX w/ 200-DMA. Which defensive group has the right call? pic.twitter.com/VQaGRDMSrZ
— Dan Russo, CMT (@DanRusso_CMT) May 26, 2021
Curious action from Utes, given the strength in bonds. If rates were going a lot lower from here, wouldn't the Utilities be stronger? pic.twitter.com/u7SOWQ2zN8
— Chris Verrone (@verrone_chris) May 26, 2021
US 10y Yield…stuck in the middle$TNX, $GC_F, $ZN_F, $PL_F, $HG_F pic.twitter.com/C3pQUjSOjs
— Ian Culley (@IanCulley) May 26, 2021
China (Yield), Copper & Crude. pic.twitter.com/KWFiwknbCy
— Nautilus Research (@NautilusCap) May 25, 2021
Kinda hard to get excited about #commodity longs broadly here ?♂️ pic.twitter.com/ySe7yImLqi
— Drew Wells, CMT, CIMA® (@DrewTheCharts) May 26, 2021
Pan American is to Silver markets as Newmont is to Gold… Do we make new highs here? $PAAS $SLV pic.twitter.com/F8EtwD60TF
— Steven Strazza (@sstrazza) May 26, 2021
$DXY pic.twitter.com/0nZZhOhXWo
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) May 26, 2021
BTC vs. GLD. Interesting negative correlation past 10 months. pic.twitter.com/bJh4I3Iai6
— Brian G (@alphacharts) May 26, 2021
You’re all caught up now. Thanks for reading!