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Today’s Summary
Friday, May 28th, 2021
Indices: US Stocks were little changed ahead of the long weekend. The Dow inched higher by 65 points or 0.19%. The S&P 500 and Nasdaq were both pretty flat (0.08% and 0.09%). The Russell 2000 underperformed, inching lower by 0.18%.
Sectors: 7 of the 11 sectors closed higher. Real Estate led, rising 0.67%. Communications lagged, slipping 0.33%.
Commodities: Crude Oil futures fell 0.33% to $66.63 per barrel. Gold futures rose 0.41% to the highest level in nearly five months at $1,906 per ounce.
Currencies: The US Dollar Index was flat (0.06%).
Interest Rates: The 10-year US Treasury yield slipped to 1.591%.
**Reminder** The US Stock Market and Bond Market will both be closed on Monday, May 31st, in observance of Memorial Day. Enjoy the long weekend!
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
quite the moment for $ARKK pic.twitter.com/NPGE2GzZ1g
— Michael Antonelli (@BullandBaird) May 28, 2021
Today’s Chart of the Day was shared by Michael Antonelli (@BullandBaird). It’s a daily bar chart of the popular Ark Innovation ETF, $ARKK, over the past eight months. The top holdings in this ETF include Tesla ($TSLA), Teledoc ($TDOC), Roku ($ROKU), Square ($SQ), and Shopify ($SHOP). Due to its heavy weighting toward growth/tech stocks, this ETF has become a good proxy for the average retail portfolio out there. Michael points out that the 50-day moving average (blue) and the 200-day moving average (blue) have pinched together to form a confluence of resistance around $115. We haven’t seen the infamous Death Cross just yet, but you know it’s coming. $ARKK kissed the 200-day in today’s session, but we closed the week at $112, below both moving averages. If we happen to get above these two moving averages in the near term, the risk is to the upside. But as long as we’re below, the risk is to the downside. Keep an eye on how $ARKK behaves next week!
Quote of the Day
“This nation will remain the land of the free only so long as it is the home of the brave.”
– Elmer Davis
Top Links
Weekly Market Performance – Commodity Strength – LPL Financial Research
The team at LPL highlights some key takeaways from this week’s price action.
What if These Don’t Resolve Higher? – All Star Charts
JC examines some tight consolidations that have formed in Materials ($XLB), and Financials ($XLF).
#ASKDAVID – David Cox
In this quick video, David Cox shares his perspective on some noteworthy technical developments.
Stocks’ Hot Vax Summer Might Feel a Little Cold and Rocky: Strategist – Yahoo Finance
Callie Cox of Ally Invest weighs in on the Summer doldrums.
A ‘Bloody Crypto’ Memorial Day Weekend? Some Bitcoin Bulls Are Dreading the Long U.S. Holiday Break – Market Watch
Katie Stockton outlines the levels she’s watching on Bitcoin this weekend.
Top Tweets
That's now 4 consecutive all-time high monthly closes for the S&P 500.
Since 1960, that type of momentum (i.e. participants consistently buying stocks at prices we've never seen before), has persisted into the future. And bigly.
Yes, this can continue. pic.twitter.com/ei77uI1rSZ
— Steve Deppe, CMT (@SJD10304) May 28, 2021
Stocks could finish higher yet again in May, making this 8 of the past 9 years May was in the green.
As we said at the start of the month, we should call it Sell in June. pic.twitter.com/3W4pgneoeA
— Ryan Detrick, CMT (@RyanDetrick) May 28, 2021
Weekly $SPX update: as we might have expected, things were quiet leading into the holiday weekend, and the S&P snapped back from its 2 week "selloff".? pic.twitter.com/LeDADuCHxR
— Michael Turvey (@MikeTurvey_TDA) May 28, 2021
8 of 11 S&P Sectors finish up on the week, with 5 of 'em outpacing the +1.23% gain in the S&P 500 $SPY
Consumer Discretionary $XLY is the biggest gainer with a +2.55% pop
Utilities $XLU lag heavily with a -1.51% decline pic.twitter.com/b1FEqwNUGw
— Grayson Roze (@GraysonRoze) May 28, 2021
$SMH Semi ETF
two weeks of strong performance +6.8% & positive every day this wk
this developing bull flag on the weekly chart worth watching (I view the Semis as an important group) pic.twitter.com/mykiupfB0U
— Christian Fromhertz (@cfromhertz) May 28, 2021
Volatility event ahead?
There have been 11 other times when the #VIX closed at a 52-week low ahead of an exchange holiday.
It jumped an average of 25% at some point during the next month when traders (and volume) returned. pic.twitter.com/VCSfVxwaAR
— SentimenTrader (@sentimentrader) May 28, 2021
Europe Swing Up Exceeds 57.50% pic.twitter.com/K2oyEm4Xg0
— Nautilus Research (@NautilusCap) May 28, 2021
Gold has pared all its losses in 2021 as inflation expectations rise. https://t.co/MkF7vACFEG pic.twitter.com/5OHHEgvwxQ
— Lisa Abramowicz (@lisaabramowicz1) May 28, 2021
$SILJ I know I mention this a lot but setting up again and looking good on all time frames. Been long for a bit and continue to add. Here's a potential breakout brewing on the short term chart with a worst case stop idea. Moving on up and out of breaks longer term pic.twitter.com/qWgww7ax0b
— Gregory Krupinski (@G_krupins) May 28, 2021
$BTCUSD Monthly#Monthlycharts pic.twitter.com/y9Mij0z0uv
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) May 28, 2021
The biggest question of all, of course, is whether or not #Bitcoin right now is making the right-hand shoulder of an important “Head & Shoulders”.
Our thinking is, yes, that is exactly what’s unfolding before our very eyes. pic.twitter.com/G8xOwhg0Ad
— Carter Braxton Worth (@CarterBWorth) May 28, 2021
After reducing net shorts in #Bitcoin futures to sub-1k, #hedgefunds added this wk. Probably encouraged by fact that $BTC ($36.2k) now below 200DMA. Rally attempts denied at average several times this wk. +, $41k horizontal resistance. Bulls can't afford to lose May 19 low $29.9k pic.twitter.com/AMLAwzxBbP
— hedgopia (@hedgopia) May 28, 2021
— CL (@CL207) May 28, 2021
You’re all caught up now. Thanks for reading!