Thursday, June 3rd, 2021
Indices: US Stocks closed lower in today’s session. The Dow was pretty flat, ticking down just 23 points or 0.07%. The S&P 500 slipped 0.36%, while the Nasdaq dropped 1.03%. The Russell 2000 fell 0.81%.
Sectors: 5 of the 11 sectors closed higher. Consumer Staples led, rising 0.62%. Consumer Discretionary lagged, falling 1.19%.
Commodities: Crude Oil futures were flat and continue to trade around $68.80 per barrel. Gold futures dropped 1.92% to $1,873 per ounce.
Currencies: The US Dollar Index moved higher by 0.66%.
Interest Rates: The 10-year US Treasury yield rose to 1.627%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Are investors really ready for this…?
IMO, an overwhelming amount are NOT.
And that's just another tailwind in the form of "incremental buyers" and pent-up demand which could keep these areas well-bid for much longer than most are prepared for… $XLF $XLE pic.twitter.com/yY0xTprVVw
— Steven Strazza (@sstrazza) June 3, 2021
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The chart shows the relative strength of Financials and Energy over the past year. These are the top two sectors so far this year. Energy is up 47% year-to-date, while Financials are up 30%. For reference, the S&P 500 is up 12% and Tech is up less than 6%, over the same period. Steve points out that the majority of investors are not positioned for an environment where these two value-oriented sectors outperform. In a comment to The Chart Report, Steve said, “Financials and Energy have been left for dead by investors due to their chronic underperformance over the past decade. But so far in 2021, both sectors are notably outperforming the S&P and look poised to continue doing so. The fact that most investors are underweight these sectors, to me, is bullish. If they continue to outperform as they have been, we’ll likely see performance chasing ensue as investors seek to gain more exposure to these sectors, keeping them well-bid for quite some time.
Quote of the Day
“Charting is a little like surfing. You don’t have to know a lot about the physics of tides, resonance, and fluid dynamics in order to catch a good wave. You just have to be able to sense when it’s happening and then have the drive to act at the right time.”
– Ed Seykota
Finding Bullish Patterns in the Markets – TD Ameritrade Network
Frank Cappelleri of Instinet offers his technical perspective on the S&P 500, Oil stocks, and $ARKK.
Industrials & Manufacturing Sectors Trading Above 50-Day Moving Average – TD Ameritrade Network
In this clip, Dan Russo highlights some of the notable sector trends.
Is It “Timber Time” for Overheated Lumber Prices? – Kimble Charting Solutions
Chris Kimble takes a look at a potential reversal in Lumber prices.
Less Than 20% Bearish for the First Time in 115 Weeks – Bespoke
Bespoke analyzes the results of the latest AAII Sentiment Survey.
Where Did All The Bears Go? Uh Oh… – All Star Charts
JC Parets weighs in on the lack of bearish sentiment.
After today's session, a potential Head and Shoulders pattern can be spotted literally by everyone.
So, the question is: will the market do what everyone can see it do?
What's your take on it? pic.twitter.com/dp5zW1j9He
— Yuriy Matso (@yuriymatso) June 3, 2021
Last week take-away notes: Material, Energy, Industrial, Financial and REITs are sectors of strength. As I’ve noted a few times, equities in general have proven to be the best hedge against inflation and I can’t see how that is any different today, even with the recent volatility pic.twitter.com/UXWNXvTQm7
— Pete Carmasino (@PeteCarmasino) June 3, 2021
— Grant Hawkridge (@granthawkridge) June 3, 2021
$KRE Regional Banking ETF
tight consolidation 👀 pic.twitter.com/AnDnX4nXW8
— Christian Fromhertz (@cfromhertz) June 3, 2021
— Jack Damn ☀️ (@JackDamn) June 3, 2021
— Katie Stockton, CMT (@StocktonKatie) June 3, 2021
— Nautilus Research (@NautilusCap) June 3, 2021
— Willie Delwiche (@WillieDelwiche) June 3, 2021
I re-entered my $TSLA short this morning after getting stopped out for a small loss last week.
BTW, the $TSLA chart looks mighty bearish.
Do we have further to go? pic.twitter.com/wgLScAhKcd
— Brandon Beylo (@marketplunger1) June 3, 2021
— J.C. Parets (@allstarcharts) June 3, 2021
$TSLA looked and felt dead in March and mid May – it's Hotel California
"they stab it with their steely knives but they just can't kill the beast" pic.twitter.com/tAbtyVFjMz
— Tom Hearden (@followtheh) June 3, 2021
You’re all caught up now. Thanks for reading!