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Market Insights

Bringing you the trading news around the world.

Breadth Widens as Optimism Spreads: Market Trends This Week

[showmodule id=”58959″]

Downloads are available here. TradeStation’s ideas on TradingView are available here.

Register for Market Trends here.

Sizing Up the S&P 500

  • Remains in tight uptrend with few bearish signals
  • Breadth widens: Advance / Decline line, new 52-week highs potentially confirm uptrend
  • Potential support around 5030
  • Stronger GDP, earnings outlooks supporting sentiment
  • Next big catalysts: Powell testimony (3/6), payrolls (3/8)
SPDR S&P 500 ETF (SPY), daily chart, with select indicators.

Special Report

Key News

  • Barclays raises S&P 500 target from 4,800 to 5,300. Sees potential for 6,050.
  • Goldman Sachs: Bullish sentiment can widen as hedge funds add to momentum trades
  • Reuters: Credit spreads hit 2-year low in sign of economic confidence
  • Deutsche Bank: Buyback activity highest since May 2023
  • Potentially dovish news today:
    • January PCE inflation inline. Personal income +1% vs +0.4% estimate.
    • Initial jobless claims and continuing claims higher than expected.
  • EBay (EBAY) rallies on surprise volume gross merchandising volume (GMV) growth.
  • Vishops (VIPS) hits 2+ year high on strong results, margin Citi upgrade. Potential margin/turnaround story
  • Constellation Energy (CEG) hits record high on IRA support for nuclear energy.
  • Axon Energy (AXON) hits new record high on earnings, revenue beat
  • Micron Technology (MU) to supply memory for Nvidia (NVDA) AI processors
  • Viking Therapeutics (VKTX) doubles on strong phase 2 data for obesity drug
  • Q4 GDP revised down by 0.1 percent but consumer spending revised up
  • Alphabet (GOOGL) under pressure for AI struggles
  • Snowflake (SNOW) falls on weak guidance, CEO Slootman exit
  • Okta (OKTA) rallies on strong results, guidance
  • Best Buy (BBY) rallies on strong margins
  • Bath & Body Works (BBWI) falls on weak guidance

Sector Watch

  • Materials starting to outperform as cyclical theme spreads
  • Consumer discretionaries, financials, industrials strong
    • Construction-related strong: URI, PWR, FIX
  • Energy weak, decoupling from cyclical theme
  • Solar energy still lagging
  • Safe havens lag: Gold miners, consumer staples, health care
  • Biotech rallies after breaking weekly resistance
  • Traditional retailers climb before earnings: JWN, ANF, AEO, GPS
Retail money market fund balances, courtesy of St. Louis Federal Reserve.

Signals Scan

  • Ford Motor (F) holds 50-, 200-day MAs
  • Apple (AAPL) potentially at risk of breaking $180
  • Alphabet (GOOGL) breaks 50-day MA
  • MPLX (MPLX) pulls back to 21-day EMA

Mover of the Week: Packaging Corp.

  • Hit new record high on 1/25 after earnings, revenue beat
  • Correlated to economic activity
  • Management sees higher volumes, pricing
  • PKG +18% in past 6 months

Using the Platform

  • Inside Bar and Outside Bar are “ShowMe” studies available on Chart Analysis, Radar Screen and Scanner
  • Can be used with daily or weekly intervals
  • Displays the last price when event occurs
  • Scanner: Set to “true” or “false”

Upcoming Events

  • Fri 3/1: ISM manufacturing
  • Tues 3/5: ISM services
    • Earnings: NIO, TGT, CRWD
  • Wed 3/6: ADP private-sector payrolls, Powell in Congress
  • Thu 3/7: Jobless claims, Powell in Congress

Standardized Performances for ETF mentioned above

ETF1 Year5 Years10 Years
SPDR S&P 500 ETF (SPY)+18.80%+78.89%+171.01%
As of Jan. 31. Based on TradeStation Data.

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement visit www.TradeStation.com/DisclosureFutures.

Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.

Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See Characteristics and Risks of Standardized Options.

About the author

David Russell
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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