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Today’s Summary
Monday, February 27, 2024
Indices: Russell 2000 +1.34% | Nasdaq +0.21% | S&P 500 +0.17% | Dow -0.16%
Sectors: 9 of the 11 sectors closed higher. Utilities led, gaining +1.89%. Energy lagged, dropping -0.43%.
Commodities: Crude Oil futures rose +1.66% to $78.87 per barrel. Gold futures rose +0.26% to $2,044 per oz.
Currencies: The US Dollar Index was flat (+0.02%) at $103.80.
Crypto: Bitcoin rose +4.67% to a multi-year high of $57,068. Ethereum gained +2.08% to $3,244.
Volatility: The Volatility Index fell -2.26% at 13.42.
Interest Rates: The US 10-year Treasury yield rose to 4.303%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Biotechs completing a long-awaited trend reversal with authority this week $XBI $IBB pic.twitter.com/3JDw7gVpnM
— Steven Strazza (@sstrazza) February 27, 2024
🏆 Today’s Chart of the Day was shared by Steve Strazza (@sstrazza).
- The SPDR Biotech ETF ($XBI) jumped +5.7% today, marking its best day since November 2022. More importantly, it closed at a fresh two-year high after shattering resistance at $94.
- Steve points out that $XBI broke out with “authority” today, forming a Breakaway Gap. This occurs when price gaps above a well-defined resistance level. They’re the most bullish kind of breakout, representing a decisive resolution. Breakaway Gaps shouldn’t get filled. They’re often found at the start of a new uptrend or as price breaks out of a range.
- $XBI is also resolving higher relative to the S&P 500, suggesting Biotech is likely to outperform. This is a positive display of risk appetite for stocks, as Biotech is one of the more risk-on industry groups.
The takeaway: Biotech ($XBI) is up +8.6% this week, and it’s only Tuesday. This is what a momentum thrust looks like. It viciously broke out of a two-year trading range in the most bullish way possible today, and it looks poised to outperform the S&P 500.
Quote of the Day
“Markets are never wrong,
only opinions are.”
– Jesse Livermore
Top Links
Stock Market Momentum: Why it’s Working and When it Will Stop – CappTheisis
Frank Cappelleri analyzes the recent patterns and price action in the S&P 500.
Making Money w/ Charles Payne – Fox Business – Fox Business
Jeff Hirsch discusses March seasonality and more.
Semiconductors ETF Rally Reaches Historic Dual Price Resistance/Breakout Level! – Kimble Charting Solutions
Chris Kimble points out that the Semiconductors are testing a potential inflection point after an incredible run.
The Case For and Against Dividend ETFs – Of Dollars and Data
Nick Maggiulli weighs the positives and negatives of dividend ETFs.
Democratic (NANC) Trading Trumps Republicans (KRUZ) – Bespoke
Bespoke compares two recently issued ETFs that track the investments of Democrat ($NANC) and Republican ($KRUZ) members of congress.
Top Tweets
Deviation from trend (big picture). SPX has now reached its 2-sigma Bollinger band vs. 200wma. First cases following cyclical bear markets are flagged in white. Cyclical tops are flagged in red. Except for the 2020 pandemic top, the minimum follow-on gain was 9% over 10 months. pic.twitter.com/9Vf3rmCPnJ
— Mark Ungewitter (@mark_ungewitter) February 27, 2024
Intraday market volatility cycles between peaks and troughs. This indicator tracks the 50-day moving average (MA) of the absolute close-to-open value. A reading above 1% signals high volatility, while below 0.5%, like now, suggests the market is in a dormant phase.
Traders,… pic.twitter.com/dmBetLSTp4
— Yuriy Matso (@yuriymatso) February 27, 2024
Beware the Ides of March this year also coincides with the seasonal decline during presidential election years where the sitting president is running.
Support Levels to Watch
S&P 500: 4800 old ATH and 4600 near summer 2023 highs. pic.twitter.com/80VWwRb3ZR— Jeffrey A. Hirsch (@AlmanacTrader) February 28, 2024
Don't look now $IWM pic.twitter.com/zwWHQQk9fM
— Michael Kahn, CMT (@mnkahn) February 27, 2024
Biotech absolutely ripping. Boosting $IWM bigly pic.twitter.com/LQKv0oBoCN
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) February 27, 2024
Classic breakout in $XBI this week
And the biotech bears will go waa, waa, waa all the way home pic.twitter.com/BiS0dnSZgs— Peter Brandt (@PeterLBrandt) February 27, 2024
Huge move out of Biotech $XBI so far this week, printing its largest 2-day gain since November of 2022 as it tries to make its way up and out of a big ol' 2-year base.
Start of a new Stage 2 uptrend? 👀 pic.twitter.com/jHzQSxKiCj
— Grayson Roze (@GraysonRoze) February 27, 2024
Not every biotech index is made the same. Some are making new highs, others aren't. $XBI $IBB $BBH pic.twitter.com/HQyrjBqBRu
— Shane C. Murphy (@murphycharts) February 27, 2024
Bitcoin making a run towards new all-time highs pic.twitter.com/wc81ySg45C
— J.C. Parets (@allstarcharts) February 27, 2024
Bitcoin is now just 16% from its all-time high. A year ago it was 65% from its all-time high. pic.twitter.com/PV6Bmhd2zY
— Bespoke (@bespokeinvest) February 27, 2024
A normal $BTC Cycle would have pulled back by now and consolidated another 6 months well under ATH's.
Right here #bitcoin is fast approaching escape velocity. pic.twitter.com/VaVHgt1PyT
— Bob Loukas 🗽 (@BobLoukas) February 26, 2024
Deviation from trend (big picture). SPX has now reached its 2-sigma Bollinger band vs. 200wma. First cases following cyclical bear markets are flagged in white. Cyclical tops are flagged in red. Except for the 2020 pandemic top, the minimum follow-on gain was 9% over 10 months. pic.twitter.com/9Vf3rmCPnJ
— Mark Ungewitter (@mark_ungewitter) February 27, 2024
You’re all caught up now. Thanks for reading!