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Today’s Summary
Thursday, February 22, 2024
Indices: Nasdaq 100 +3.01% | S&P 500 +2.11% | Dow +1.18% | Russell 2000 +0.96%
Sectors: 10 of the 11 sectors closed higher. Technology led, gaining +3.27%. Utilities lagged, falling -0.77%.
Commodities: Crude Oil futures rose +0.90% to $78.61 per barrel. Gold futures fell -0.18% to $2,031 per oz.
Currencies: The US Dollar Index inched lower by -0.05% at $103.95.
Crypto: Bitcoin fell –1.14% to $51,253. Ethereum was unchanged at $2,968.
Volatility: The Volatility Index dropped -5.34% to 14.53.
Interest Rates: The US 10-year Treasury yield inched higher to 4.327%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
It is a positive development for semis and the market as a whole if $AMD remains above ~$164. pic.twitter.com/3pGDyJbE3F
— Alfonso Depablos (@AlfCharts) February 22, 2024
🏆 Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts).
- Nvidia ($NVDA) carried the market on its back today, but it’s not the only stock that could sustain the current rally in the broader market.
- Advanced Micro Devices ($AMD) has become the 25th largest stock in the S&P 500 and the 10th largest in the Nasdaq 100. It’s no Magnificent 7 stock, but Alfonso points out it could bolster the indices.
- $AMD broke out to a record high today after spending the past month consolidating above its 2021 peak. It’s emerging from a 2-year base after recovering from a -65% drawdown. It’s resuming its long-term uptrend and the next Fibonacci extension is nearly +30% higher at $232.
The takeaway: Nvidia ($NVDA) is the market’s new messiah, but it’s not the only game in town. There are fresher breakouts in progress that offer better risk/reward.
Quote of the Day
“One short-term swing trader’s bear market is another long-term trend follower’s oversold uptrend.”
– David Lundgren
Top Links
The AI Boom Continues – Trading Adventures
Andy Moss looks at some of this week’s top technical developments.
The Winner’s Circle – Investopedia
David Lundgren identifies three characteristics of long-term trends.
5 Factors That Would Cause a Market Decline – CappThesis
Frank Cappelleri examines the recent price action in the S&P 500 and what might spark a bearish reversal.
ETFs & Markets with Todd Sohn: Concentration Risk for Growth ETFs – Strategas Asset Management
Todd Sohn looks at the extreme outperformance from Growth relative to Value.
Bespoke’s Morning Lineup – Bespoke
Bespoke compares the 34-year base in Japan’s Nikkei 225 index to the 25-year base in the S&P 500 after the Great Depression.
Top Tweets
46 $SPX stocks making new ALL TIME highs today.
The most are from Industrials (15) and Financials (12).
Tech has 8.
— Frank Cappelleri (@FrankCappelleri) February 22, 2024
$SPY clean move off 20-sma to new ATH. pic.twitter.com/i9zLAbc9C1
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily) February 22, 2024
Just by a hair…the Nasdaq 100 closed up 3.01% today and made a new all-time closing high.
Note, 3/22/2000 was the last time it happened. Look how many times it happened in the run-up to that day… pic.twitter.com/ZhJ83Hn8zK
— Bespoke (@bespokeinvest) February 22, 2024
Unusual situation developing.
The Nasdaq Composite is up nearly 3%, with fewer than 55% of issues advancing.
All 5 precedents according to SentimenTrader occurred between 1999-2001. pic.twitter.com/BcuyCoxJQo
— Jason Goepfert (@jasongoepfert) February 22, 2024
Odd day today, SPX closed above it's 50d for 75 days and is up over +15% from 15 weeks ago. Since 1994 this has happened only a few other times…
cc: @WalterDeemer pic.twitter.com/pGn28gAZXs— FinTwit_Bot (@BotFintwit) February 23, 2024
$SMH 3rd best day since March/April 2020 pic.twitter.com/afOUfvWXoD
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) February 22, 2024
The stock market isn't following its average election-year cycle as it should have entered a 3-month weak spot starting in 2024. However, the market has just ripped higher.
Information is always relevant, regardless of whether or not it fits the expected patterns. pic.twitter.com/er9VIMgWU9
— Grant Hawkridge (@granthawkridge) February 22, 2024
We are currently in one of the strongest multi-month bull rallies equities have seen.
Would be a really shame if you missed the entire thing because you were stressed over pointless things like politics, inflation, credit card debt, housing starts, or China… pic.twitter.com/bjszEMMBA7
— Ian McMillan, CMT (@the_chart_life) February 22, 2024
The equal-weight S&P 500 $RSP is up +1% today and breaking out to the highest levels since January 14th, 2022.
I look at this chart and I see:
• Higher highs for 20 months
• Higher lows for 16 monthsBy definition, that's an uptrend for at least 16 months.
Don't fight it. pic.twitter.com/JY1iL4L6M3
— Caleb Franzen (@CalebFranzen) February 22, 2024
2024 leaders YTD $NVDA $SMH pic.twitter.com/i13LjWjJct
— Scott Redler (@RedDogT3) February 22, 2024
The Nikkei is above 39000 and set a new all-time high for the first time since 1989. That's 34 years. Incredible. pic.twitter.com/W5IH5biIFa
— Liz Young (@LizYoungStrat) February 22, 2024
Wow. European stocks are hitting all-time highs, following Japan! 🥳 pic.twitter.com/FnNjetIiPc
— Markets & Mayhem (@Mayhem4Markets) February 22, 2024
For the archives: pic.twitter.com/o3USBNafmU
— Walter Deemer (@WalterDeemer) February 22, 2024
Wingstop $WING sells chicken tenders and trades at 114x NTM P/E.
Nvidia $NVDA literally provides the picks and shovels for an AI revolution that will transcend space and time, ushering in a new era of human prosperity.
And it trades at 35x NTM P/E.
Where's the bubble? pic.twitter.com/z3NVtqSo8q
— Brandon Beylo (@marketplunger1) February 22, 2024
You’re all caught up now. Thanks for reading!