Week (February 24 - 28) in Review: Financial Leaders
The week of February 24-28, 2025, was marked by significant market volatility influenced by geopolitical tensions and economic policy shifts. U.S. President Donald Trump's announcement of impending tariffs—25% on Mexican and Canadian goods and an additional 10% on Chinese imports—set to commence on March 4, led to widespread market reactions. These tariffs not only affected traditional financial markets but also had a pronounced impact on cryptocurrencies, with Bitcoin experiencing a sharp decline of over 7%, falling below the $80,000 mark.
In response to the announced tariffs, global markets experienced heightened volatility. Inverse (short) ETFs saw notable gains as investors sought protective measures against anticipated market downturns. The ProShares UltraPro Short QQQ (SQQQ) rose by 15.75%, the Direxion Daily S&P 500 Bear 3X ETF (SPXS) increased by 7.93%, and the ProShares UltraPro Short S&P500 (SPXU) climbed by 7.87%. Conversely, major cryptocurrencies faced significant losses; Bitcoin (BTC) dropped by 15.80%, Ethereum (ETH) decreased by 19.77%, and XRP fell by 20.39%.
The financial sector demonstrated resilience amid the turbulence, with the iShares MSCI Europe Financials ETF (EUFN) gaining 2.55%. The real estate sector also showed positive movement; the Cohen & Steers Quality Income Realty Fund (RQI) increased by 1.94%, and the Invesco KBW Premium Yield Equity REIT ETF (KBWY) rose by 1.87%. In contrast, the technology sector faced challenges, as evidenced by declines in the First Trust NASDAQ-100-Tech Sector ETF (QTEC) by 6.44%, the iShares Semiconductor ETF (SOXX) by 8.36%, and the ARK Innovation ETF (ARKK)Â by 9.32%.
European markets remained relatively stable during this period. The JPMorgan BetaBuilders Europe ETF (BBEU) experienced a marginal increase of 0.05%, while the WisdomTree Europe Hedged Equity ETF (HEDJ) and the iShares Core MSCI Europe ETF (IEUR) saw slight declines of 0.06% and 0.07%, respectively. In contrast, Latin American markets faced more pronounced downturns; the iShares MSCI Brazil ETF (EWZ) decreased by 2.98%, and the VanEck Brazil Small-Cap ETF (BRF) fell by 5.69%. North American markets were not immune to the volatility, with the Invesco QQQ Trust (QQQ) declining by 4.91%.
Summary
The financial landscape during the week of February 24-28, 2025, was characterized by significant fluctuations driven by geopolitical developments and economic policy announcements. While certain sectors and regions demonstrated resilience, the overarching trend was one of caution and market correction. Investors are advised to stay informed and consider diversification strategies to navigate the ongoing volatility.
SQQQ's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for SQQQ moved out of overbought territory on April 09, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 instances where the indicator moved out of the overbought zone. In of the 21 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SQQQ as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SQQQ turned negative on April 11, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
SQQQ moved below its 50-day moving average on April 24, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SQQQ crossed bearishly below the 50-day moving average on April 29, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SQQQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SQQQ broke above its upper Bollinger Band on April 03, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SQQQ entered a downward trend on May 07, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 17 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for SQQQ moved above the 200-day moving average on April 29, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQQQ advanced for three days, in of 243 cases, the price rose further within the following month. The odds of a continued upward trend are .
Industry description
General Information
Category Trading