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Today’s Summary
Tuesday, February 20, 2024
Indices: Dow -0.17% | S&P 500 -0.60% | Nasdaq 100 -0.79% | Russell 2000 -1.41%
Sectors: 1 of the 11 sectors closed higher. Consumer Staples led, gaining +1.05%. Technology lagged, falling -1.02%.
Commodities: Crude Oil futures fell –1.81% to $77.04 per barrel. Gold futures gained +0.78% $2,040 per oz.
Currencies: The US Dollar Index fell -0.22% at $104.05.
Crypto: Bitcoin rose +0.94% to a two-year high of $52,275. Ethereum gained +2.38% to a new 52-week high of $3,016.
Volatility: The Volatility Index gained +4.83% to 15.41.
Interest Rates: The US 10-year Treasury yield inched lower to 4.279%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Something that is incredibly important to understand. While everyone continues to try to bet against the market on every pull back. While they scream recessions and bear markets are coming. When something like #Bitcoin is moving higher, we wont see it. The most risk on asset… pic.twitter.com/tGAOFMiSBq
— Against All Odds Research (@JasonP138) February 20, 2024
🏆 Today’s Chart of the Day was shared by Jason Perz (@JasonP138).
- Bitcoin is currently trading at a two-year high of around $52k. It’s still down -23% from its peak, but there’s virtually no resistance preventing it from testing record highs.
- Jason points out that Bitcoin has been a solid leading indicator in recent years. It’s one of the most speculative assets out there, so its performance can tell us a lot about risk appetite and the broader market environment.
- This was especially true last year when it wasn’t as clear that we were in a new bull market. While many smart people warned of a recession, this speculative internet token steadily chugged higher, suggesting the economy was fine.
The takeaway: Bitcoin could realistically test record highs in the coming weeks after clearing every major resistance level. It has been a solid leading indicator and continues to scream “risk-on.”
Quote of the Day
“People often say there’s lots of uncertainty, but when was there ever certainty in the markets, the economy, or the future? I’m just trying to understand the present.”
– Bill Miller
Top Links
Par for the Course After Presidents’ Day – Bespoke
Bespoke points out that the Tuesday after Presidents’ Day has historically been weak.
One Worry Right Now? The Calendar – Carson Group
Ryan Detrick highlights the seasonal headwinds that stocks are facing right now.
Equally-Weighted Indexes Back to 2021 Highs – All Star Charts
JC Parets shares his thoughts on the current market environment.
This Beaten-Down Magnificent Seven Stock is Poised to Regain Its Leadership Status – StockCharts.com
Mary Ellen McGonagle examines the outlook for Tesla ($TSLA)
Roses are Red – The Weekly Trend
David Zarling and Ian McMillan discuss some of the noteworthy technical developments across the markets.
Top Tweets
The tension surrounding $NVDA earnings is thick. 🔴 pic.twitter.com/AwAJicGj5x
— TrendSpider (@TrendSpider) February 20, 2024
The tape had a heavy feel today. Can't only blame Tech/ $NVDA. Defensive mix, too, on the four-week high/low list today. $SPY, $QQQ $IWM $XLU $XLP $XLV $XLK pic.twitter.com/a1uGn0ZQaU
— John Kolovos, CMT, CFA (@John_Kolovos) February 20, 2024
The NASDAQ $NQ_F $MNQ_F has completed a possible rising wedge chart pattern. Rising wedges typically will correct to the intermediate lows of the wedge with the eventual target of the low of the wedge or 16,334 pic.twitter.com/w89st8R6wV
— Peter Brandt (@PeterLBrandt) February 20, 2024
Wouldn't that be something? $SPX pic.twitter.com/85WT5prgHg
— Austin Harrison, CFA, CMT (@meanstoatrend) February 20, 2024
As we've noted for a few weeks now, to see some seasonal weakness the second half of February (maybe till St. Pat's Day) would be perfectly normal.
"Plans are useless, but planning is everything." President Eisenhower pic.twitter.com/01Mct0cAAv
— Ryan Detrick, CMT (@RyanDetrick) February 20, 2024
AI leaders pulling back ahead of $NVDA earnings tomorrow. $NVDA had a ~45% move to start the year, the pullbacks will be sharp as well. Momentum works in both directions. pic.twitter.com/RgLrqAC7Yb
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) February 20, 2024
All eyes are on $NVDA ahead of tomorrow's earnings report; today's MACD downturn shows a loss of short-term momentum…if a deeper pullback unfolds, we are watching the 50-day MA (in green) as initial support, and the breakout point as secondary support…as long as the 20-day MA… pic.twitter.com/kjPfQIHUKd
— Katie Stockton, CMT (@StocktonKatie) February 20, 2024
Natural Gas futures, long-term perspective. pic.twitter.com/rHHwJBK20f
— Mark Ungewitter (@mark_ungewitter) February 20, 2024
Ethereum $ETH hits $3,000 for the first time since April 2022 👀 pic.twitter.com/C81BVU4Cqc
— Barchart (@Barchart) February 21, 2024
#Bitcoin just completed an A→B→C thrust for the 2-year Williams%R Oscillator (one of my favorite $BTC indicators).
A: break above overbought
B: fall below overbought
C: break above point AThe last time this happened was in October 2020, before price gained +390% in 6 months. pic.twitter.com/i5yjvQ2yGb
— Caleb Franzen (@CalebFranzen) February 20, 2024
Multiple downgrades, FIRST DIVIDEND CUT in 20 years and slashed by half…
Now kicked out of the venerable old lady DOW JONES INDEX.
Stock price near the 1999 peak SUPPORT level (yeah 25 years!)
Watch list! pic.twitter.com/wp5oDPwCgA— conradseric, CMT, CAIA, CEFA (@conradseric) February 21, 2024
With Amazon getting added to Dow: is this a signpost of 2020 tech inspired changes to the key gauge?$CRM: Salesforce was added August 31st 2020 to replace Exxon.
How did that work out? 👀 pic.twitter.com/EIj04LSLv2
— Jeremy Schwartz (@JeremyDSchwartz) February 20, 2024
You’re all caught up now. Thanks for reading!