Individual Institutional
Sign in
Open account
Individuals Institutional

Call toll-free 800.328.1267

Login
[lwp_divi_breadcrumbs font_icon=”5||divi||400″ use_custom_home_link=”off” link_color=”#000000″ separator_color=”#000000″ current_text_color=”#FFFFFF” admin_label=”Breadcrumbs” module_class=”insight-breadcrumbs” _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}”][/lwp_divi_breadcrumbs]

Market Insights

Bringing you the trading news around the world.

S&P Holds December High as Volatility Fades: Market Trends This Week

[showmodule id=”58959″]

Downloads available here and here.

Register for Market Trends here.

Sizing Up the S&P 500

  • S&P 500 tests and holds December high of 4,101.
    • 38.2% retracement of YTD move
  • Tests and holds middle of price channel, potential signal for bull flag breakout
  • S&P 500 forming second inside week
  • Historical volatility, VIX continue to fall.
  • 21-day EMA potentially marking uptrend

Key Economic News:

  • Oil inventories rise more than expected amid record U.S. shale production.
  • January CPI higher than expected after December upward revision
  • Retail sales, Empire Index may suggest little recession risk.
  • NAHB homebuilder sentiment has biggest gain in almost 10 years as sales expectations jump.

Company News

  • Cisco Systems (CSCO): earnings, revenue beat; government business strong, similar to cybersecurity names last week
  • Smaller growth stocks (including recent IPOs) jump on strong results:
    • Uber Technologies (UBER)
    • Palantir (PLTR)
    • Airbnb (ABNB)
    • Roku (ROKU)
    • Twilio (TWLO)
    • Roblox (RBLX)
  • DexCom (DXCM): Earnings, revenue beat ahead of G7 product launch tomorrow
S&P 500, daily chart, with key technical indicators and levels, courtesy of TradingView.

Leaders & Laggards

  • Growth stocks continue to outperform.
  • Chinese stocks struggle as economy struggles to recover
  • Precious metals crumble as inflation fears subside and U.S. stabilizes.
  • Safe havens are the only losers YTD: Utilities, health care, consumer staples
  • Consumer discretionaries lead in 2023 thanks to Tesla (TSLA) and cruise ships
  • Crypto-related stocks rebound after pullbacks

Signals Scan

  • Walt Disney (DIS) holds 21-day EMA
  • AT&T (T) holds 50-day MA after “Golden Cross” on 1/4
  • KLA (KLAC) holds 50-day MA, August high.
  • Stryker (SYK) pulls back from record high, holds 21-day EMA.

Mover of the Week: AppLovin

AppLovin (APP) jumps 85% after dropping 92% from November 2021.

  • The mobile-software maker’s earnings, revenue and guidance beat forecasts.

Upcoming Events

  • Monday, 2/20: Presidents’ Day (market closed)
  • Tuesday 2/21:
    • Walmart (WMT) reports in premarket.
  • Wednesday, 2/22: Fed minutes.
    • Nvidia (NVDA), Etsy (ETSY) report in the post market
  • Thursday, 2/23: Revised Q4 GDP
    • Alibaba (BABA) reports in premarket
    • Block (SQ) reports in postmarket
  • Friday, 2/24: CPE inflation

Using the Platform

Platform tool of the week: Price channels

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement Investment and Trading Disclosures Booklet – Futures.

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. Visit www.TradeStation.com/Pricing for full details on the costs and fees associated with 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.

Related stories

View all
Stock Gains Widen as Investors Hope for Lower Inflation

Stock Gains Widen as Investors Hope for Lower Inflation

by | May 13, 2024

Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than four-fifths of the index's members advanced,...

The Basics of Options

The Basics of Options

by | May 12, 2024

Options are an important tool for many retail investors. They can either replace trading shares, or make it easier to position oneself in stocks. Let’s consider the first things options traders need to know. An Option’s Price Is Usually Called ‘Premium’ There are some...

Memory Tricks for Options Greeks Like Delta, Gamma and Vega

Memory Tricks for Options Greeks Like Delta, Gamma and Vega

by | May 12, 2024

Options are complex instruments that can swing sharply in value. Traders may find the moves confusing, so this article will help explain key "Greeks" -- some of the most important factors impacting the price of options. Greeks are Greek letters used in complicated...