Stock Market Volatility Continues To Rattle Investors

The S&P 500 Index sold off by 1.01% on Tuesday as tensions between Russia and Ukraine continued; only 23% of the S&P’s components finished positive.

Equity charts still look ugly; all major equity indices have strongly bearish postures and are trading below falling 30 day moving averages.

Further carnage on Tuesday across the stock market indices included the Dow Jones Industrial Average closing down 1.42%, the NASDAQ Composite was down 1.23%, and the Russell 2000 was down 1.45%.

While not breaching intraday lows, the Dow Jones Industrial Average and S&P 500 suffered their lowest closing prices of the past several months.

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Remarkably, if the S&P 500 were to end the year at this exact level, it would make 2022 the 2nd worst calendar year performance of the last 20 years.

With it being 2/22/22, we are throwing a 22% off sale for the next 2 days on a Market Scholars 3-Year Premium subscription (using coupon code 22off).

Energy is still atop the Sector Selector (by a long shot); Technology finds itself at the bottom for the third time in the last four weeks.

Gold has recently turned into a star performer; it has a strongly bullish intermediate posture and is trading well above its rising 30 day moving average. Oil was up over 1% today on geopolitical concerns; however, it closed near the lows of the day and now has a weakly bearish intermediate posture.

Long-Term U.S. Treasuries rallied 0.26%, which was their 4th straight positive session; they now have a weakly bullish posture (but still under their 30 DMA). The 10 Year U.S. Treasury Yield fell to 1.94%; despite the pullback in rates over the past week, they remain in a significant uptrend.

Bitcoin sold off with other risk assets today; it was down 5% (but closed near the highs of the session) and now has a weakly bearish posture.

After a brief amount of recent outperformance, emerging markets joined the developed foreign markets back below their falling 30 day moving average.

All sectors closed lower on Tuesday; Consumer Discretionary was the worst (down about 3%).

Our trade application example featured selling a put on Home Depot (HD) due to it getting hammered after reporting earnings (despite increasing its dividend 15%); the put was sold with a strike price at a historically-attractive dividend yield area where we’d be comfortable purchasing the stock for the long term.

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Stock Market Outlook Video (for February 23) – News and Analysis

Twitter:  @BrandonVanZee and @MarketScholars

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.