Sunday, March 1, 2015

Week in Review (2/23/15 - 2/27/15)

The S&P 500 finished the week slightly lower.  The index spent most of the week trading in a narrow range and digesting February's strong monthly gains.  To add perspective, this February was the 64th largest monthly move since 1960 and the 10th largest monthly gain since the 2009 bottom.  Needless to say we continue to be in a long term bull as this monthly chart shows with the 12 month moving average is still surging higher with prices. 

This week did feature some decent strength in the Nasdaq and even though the DOW finished slightly lower some individual names like HD, GE, and KO held up nicely.  The chart below shows the five indexes week long range.

However it still looks as if we are firmly entrenched in a channel like trading pattern.  If this continues to hold true, the upside may be limited in the short term as resistance around the upper channel line comes into play.  The good news is we are not seeing many overbought indicators as the market chugs higher.  We also continue to see a healthy amount of big quality stocks holding their gap ups which is a very healthy sign. 

Looking forward to the new trading week and hoping that March brings some kinder weather.


Ryan Worch is the Managing Director of Worch Capital LLC. Worch Capital LLC is the general partner of a long/short equity strategy that operates with a directional bias and while emphasizing capital preservation at all times.

Ryan on: Ryan Worch on LinkedIn, Ryan Worch on Twitter | Ryan Worch Bio