Welcome to this week’s edition of the Weekly Trading Insight! As we navigate through a dynamic market landscape influenced by technological advancements and key economic indicators, our aim is to equip you with the necessary insights to make informed trading decisions. This week, we delve into the latest market data, highlight significant trends, and identify opportunities that lie ahead.
Market Recap
- US 30: Closed at 44,540.00, down 171.5 points (-0.38%)
- US 500: Ended at 6,114.90, nearly unchanged at -0.2 points (0.00%)
- Dow Jones: Finished at 44,546.08, losing 165.35 points (-0.37%)
- S&P 500: Settled at 6,114.63, slightly lower by -0.44 points (-0.01%)
- Nasdaq: Closed at 20,026.77, gaining 81.13 points (+0.41%)
- S&P 500 VIX: Dropped to 14.77, down 0.33 points (-2.19%)
- Dollar Index: Declined to 106.58, losing 0.640 points (-0.60%)
Feature Analysis: Buffett’s Berkshire Invests in Constellation Brands, Trims Bank Stakes
Warren Buffett’s Berkshire Hathaway revealed a new $1.24 billion investment in Constellation Brands (NYSE:STZ), sending the stock up 6% after-hours despite its 25.8% year-to-date decline. The 13F filing also showed major reductions in bank holdings, cutting Citigroup (NYSE:C) by 74% and Bank of America (NYSE:BAC) by 15%, while maintaining its 300 million-share stake in Apple (NASDAQ:AAPL) after previous sell-offs. Additionally, Berkshire trimmed its position in DaVita HealthCare (NYSE:DVA) by $32 million. Despite the 45-day lag in reporting, Buffett’s portfolio adjustments remain closely watched by investors seeking insights into market trends.
Trading Strategies and Ideas
- S&P 500 Index: The S&P 500 remained flat this week, hovering just below its all-time high. While momentum has slowed, the index continues to find support at the 20-day Simple Moving Average (SMA), suggesting buyers are still stepping in on pullbacks. If the SPX can break decisively above 6,150, it could trigger another leg higher, while a drop below 6,080 may signal consolidation. Near-term technical outlook: neutral to slightly bullish.
- Nasdaq 100 Index: The Nasdaq 100 extended gains, closing above 20,000 for the first time, fueled by strength in tech and AI-related stocks. The Relative Strength Index (RSI) remains below overbought levels, leaving room for further upside. However, if bond yields rise, the index could see profit-taking near 20,200. Watch for support at 19,800 in case of a pullback. Near-term technical outlook: bullish.
Upcoming Economic Events
- Monday (Feb. 17): No reports
- Tuesday (Feb. 18): Empire State Manufacturing, NAHB Housing Market Index, Net Long-Term TIC Flows
- Wednesday (Feb. 19): Building Permits, EIA Crude Oil Inventories, Housing Starts, MBA Mortgage Applications Index
- Thursday (Feb. 20): Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Leading Indicators, Philadelphia Fed Index
- Friday (Feb. 21): Existing Home Sales, University of Michigan Consumer Sentiment – Final
For detailed insights and more information, visit Reuters and Yahoo Finance.
As we look ahead to another trading week, we at FundYourFX are thrilled to enhance our offerings with new pathways to success that include both direct and challenge-based routes. Now, alongside our instant funding options, we introduce a 1 Phase and 2 Phase Evaluation Challenge to accommodate diverse trading strategies. Our traders now enjoy an increased profit split of up to 95%, access to up to $2M in capital, and the assurance that comes with no liability for losses. With three years of industry experience, high leverage of 1:100, weekly payouts, and personalized support, we are dedicated to your growth. Our flexible trading conditions also allow for news trading and the use of Expert Advisors without a stop loss rule, empowering you to trade your way to success. Discover more about how we can support your trading goals at FundYourFX.
Remember to stay informed, adapt to market conditions, and focus on disciplined trading practices. Your success is our top priority, and we’re here to support your journey.
Disclaimer
This newsletter is for informational purposes only and does not constitute financial advice. Always do your own research and consider consulting a financial advisor.
