Stock Market Update - June 4, 2021

Market continue to be in an uptrend. All indicators remain up. Jobless claims are going down and with the COVID vaccine being distributed the economy looks to be poised for a recovery. I am interested in energy and travel stocks.

XLE Spider is showing signs of recovery and has a ways to go to get to the last high. Even with the move to electronic vehicles we will still need energy for years to come.

An interesting set of news articles surfaced this week related to the COVID outbreak's potential source being the Wuhon Lab. Vanity Fair has a nice article here. 

Bitcoin has been a bit of a ride these last couple of weeks as Elon Musk is in then out. 

 

 

Bitcoin has been making news over the last couple of weeks. A large surge was seen after Elon Musk announced Tesla plans to accept bitcoin. Tesla bought $1.5 billion bitcoin.

 

Then there was the introduction of a new Bitcoin ETF, Purpose BTCC.

 This week also brought an unusual winter storm URI to Texas. Texas is now examining the problems that brought power issues, such as rolling blackouts and lack of water. 

 

It's time to look at energy by viewing the XLE chart. I think it is in Stage 1. The moving average line is starting to slope upward. I expect that when we recover from COVID, energy prices will rebound from the big plunge they took last year.

 

 

 For more reading on energy, I recommend these articles on Stockcharts:

• The Nightmare of Capital Efficiency
• Is Oil Just Getting Started