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 goal is to provide you with the insights you need to make informed trading decisions.
This week, we will explore the latest market data, highlight significant trends, and identify the opportunities that lie ahead.
Market Recap
- US 30: Closed at 43,416.00, down 760.9 points (-1.72%).
- US 500: Ended at 6,013.60, losing 104.0 points (-1.70%).
- Dow Jones: Finished at 43,428.02, down 748.63 points (-1.69%).
- S&P 500: Settled at 6,013.13, declining by 104.39 points (-1.71%).
- Nasdaq: Experienced the sharpest decline, closing at 19,524.01, dropping 438.36 points (-2.20%).
Berkshire Hathaway Posts Record Earnings and All-Time High Cash Reserves Ahead of CEO Transition
Berkshire Hathaway achieved record operating earnings of $47.4 billion in 2024, driven by impressive performance from its insurance division, especially GEICO. Additionally, increased investment income, thanks to higher interest rates, helped raise its cash reserves to a new peak of $334.2 billion.
CEO Warren Buffett indicated that a leadership transition to Greg Abel is on the horizon. He also expressed enthusiasm for the company’s investments in Japanese trading companies and reiterated a preference for equities over cash. Despite mixed results across its broader businesses, Buffett cautioned about the risks of inflation potentially diminishing bond values.
Effective Trading Strategies and Insights
- S&P 500 Index: This week, the S&P 500 (SPX) briefly reached new all-time highs but was unable to maintain that momentum, slipping back into its recent trading range of 5,960 to 6,120. This failure to sustain a breakout indicates that the index may experience further consolidation or weakness in the near term. The near-term technical outlook is slightly bearish.
- Russell 2000 Index: The Russell 2000 (RUT) faced sharper declines this week, which suggests increased selling pressure. The index has struggled to break above its 50-day simple moving average (SMA) and now appears to be approaching a critical support level at its 200-day SMA. A drop below this level would likely indicate a continuation of bearish momentum going forward. The near-term technical outlook remains slightly bearish.
Key Upcoming Economic Events
- Monday (Feb. 24): No reports
- Tuesday (Feb. 25): Consumer Confidence, FHFA Housing Price Index, S&P Case-Shiller Home Price Index
- Wednesday (Feb. 26): EIA Crude Oil Inventories, MBA Mortgage Applications Index, New Home Sales
- Thursday (Feb. 27): Continuing Claims, Durable Goods, EIA Natural Gas Inventories, GDP (Second Estimate), Initial Claims, Pending Home Sales
- Friday (Feb. 28): Advanced International Trade in Goods, Advanced Retail Inventories, Advanced Wholesale Inventories, Chicago PMI, PCE Prices, Personal Income, Personal Spending
For detailed insights and more information, visit Reuters and Yahoo Finance.
For detailed insights and more information, visit Reuters and Yahoo Finance.
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Disclaimer
This newsletter is intended for informational purposes only and does not serve as financial advice. Always conduct your own research and consider seeking guidance from a financial advisor.
