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Today’s Summary
Monday, February 28th, 2022
Indices: Russell 2000 +0.35% | Nasdaq 100 +0.34% | S&P 500 -0.24% | Dow -0.49%
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining +2.47%. Real Estate lagged, falling -1.72%.
Commodities: Crude Oil futures rose +4.51% to $95.72 per barrel. Gold futures rose +0.69% to $1,901 per ounce.
Currencies: The US Dollar Index rose +0.21%.
Crypto: Bitcoin rose +14.40% to $43,216.05. Ethereum rose +11.72% to $2,907.90.
Interest Rates: The US 10-year Treasury yield dropped to 1.827%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Small Caps $IWM actually outperformed $SPY & $QQQ in Feb
Feb performance $IWM +1%$SPY -3%$QQQ -4.5% pic.twitter.com/bKIeYJ90Nu
— Christian Fromhertz ???? (@cfromhertz) February 28, 2022
Today’s Chart of the Day was shared by Christian Fromhertz (@cfromhertz). It’s a ratio chart of the Russell 2000 vs. the S&P 500 over the past year ($IWM/$SPY). The S&P 500, Dow, and Nasdaq all fell more than 3% in February, however, the Russell 2000 managed to close higher by about 1%. Small-Caps have been underperforming Large-Caps for nearly a year now, but this was the best month for the Russell 2000 vs. the S&P 500 since January 2021. As we know, Small-Caps tend to lead the broader market higher or lower. They’re perceived as risker and more aggressive than their Large-Cap peers, so their relative performance serves as a good barometer for risk appetite. When Small-Caps are outperforming, it’s a sign that market participants have a healthy appetite for risk. When they’re underperforming, like they have been for the past year, it suggests a lack of risk appetite. This is an encouraging start for Small-Caps, but bulls want to see them continue to outperform.
Quote of the Day
“A mistake is when you don’t follow your rules. If you don’t have rules in trading, everything you do is a mistake.”
– Van K. Tharp
Top Links
S&P 500 Up 71.4% of Time on First Trading Day of March – Almanac Trader
Jeff Hirsch examines how the major indices have historically performed on the first trading day in March (tomorrow).
5 Things to Pay Close Attention to This Week – PFT Trading
Greg Rieben highlights five charts to watch this week.
3 Uptrends Worth Watching – All Star Charts
JC Parets takes a look at three noteworthy charts to keep an eye on.
Bond Spreads Are Widening – Andrew Thrasher
Andrew Thrasher examines some signs of caution in the fixed income market.
Wild Thing – The Weekly Trend
In this podcast, David Zarling, Ian McMillan, and Dan Gorghuber discuss some of the most noteworthy technical developments.
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Top Tweets
QQQ has had an intraday range of more than 1% every day this year.
— Bespoke (@bespokeinvest) February 28, 2022
Some February Stats…
Dow -3.53%
SPX – 3.14%
NDX – 4.64%
Russell +1.02%Dow winner/loser $CVX (+10.8%), $HD (-13.9%)
SPX winner/loser $SEDG (+34.1%), $EPAM (-56.4%)
NDX winner/loser $FTNT (+15.9%), $PYPL (-34.9%)Best Sector $XLE (+7.6%)
Worst Sector $XLC (-5.4%)— Jay Woods (@JayWoods3) February 28, 2022
The big stock gains tend to happen late in a midterm year, but be aware that March tends to see strength. pic.twitter.com/7fZeENOH6B
— Ryan Detrick, CMT (@RyanDetrick) February 28, 2022
#NASDAQ/ $QQQ had a decent day despite the volatile midday. The number of new highs (bottom chart) are still small but climbed back to the top of the range over the last month. A move above would be a big clue of the improved probability that we made a meaningful bottom.
1/2 pic.twitter.com/pbglqGCr2f— Mike Fuetsch, CMT (@OfficialFuetsch) February 28, 2022
The #NASDAQComposite #NASDAQ $COMP is up 9.2% from Thursday's low. Just three days. That's how quickly things can change, folks.
*Not a recommendation pic.twitter.com/xydu1cYnY3
— Cameron May (@CMay_TDA) February 28, 2022
Average NASDAQ stock is further below its high now than at the COVID lows. pic.twitter.com/qob7xGOJR9
— Willie Delwiche, CMT, CFA (@WillieDelwiche) February 28, 2022
AAII bears now higher than '18 taper tantrum and Covid lows. probably not the best place to be pressing shorts. #stockmarket #SPX #trading pic.twitter.com/MuRI8XaIGX
— CoiledSpringCapital, CMT (@coiledspringcap) February 27, 2022
S&P 500 Value is having its best quarter relative to S&P 500 Growth since 2001
[Past performance is no guarantee of future results] pic.twitter.com/2wj6mOQOBZ— Liz Ann Sonders (@LizAnnSonders) February 28, 2022
Big picture view of a very important relationship, Nasdaq 100 vs S&P 500. The February 2022 monthly close in this relationship is at an exactly dated 22-year-old crucial level from February 2000.$QQQ vs $SPX pic.twitter.com/E8DSxpjcoK
— David Zarling, CMT (@AdaptivCharts) February 28, 2022
Taking back a short-term resistance level… pic.twitter.com/WryhVD5UVH
— Ian McMillan, CMT (@the_chart_life) February 28, 2022
$ARKK – Monthly#Monthlycharts pic.twitter.com/udlWKxHuaj
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) February 28, 2022
#Bitcoin > 40K pic.twitter.com/4Uv2SK5Alv
— jeroen blokland (@jsblokland) February 28, 2022
big #levelofinterest coming up for #Bitcoin near 45K pic.twitter.com/2MFsP09X0A
— Brian Shannon, CMT (@alphatrends) February 28, 2022
February…
Volatility $VIX: +21%
Crude Oil $USO: +8%
Bitcoin $BTC: +8%
Energy $XLE: +7%
Gold $GLD: +6%
Small Caps $IWM: +1%
Bonds $AGG: -1%
Developed ex-US $VEA: -3%
S&P 500 $SPY: -3%
EM $VWO: -4%
Nasdaq 100 $QQQ: -4%
Tech $XLK: -5%
ARK Innovation $ARKK: -7%
Russia $RSX: -55%— Charlie Bilello (@charliebilello) February 28, 2022
You’re all caught up now. Thanks for reading!