{"id":185964,"date":"2023-03-02T13:17:47","date_gmt":"2023-03-02T18:17:47","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=185964"},"modified":"2024-01-24T12:14:23","modified_gmt":"2024-01-24T17:14:23","slug":"chart-advisor-a-messy-start-for-march","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-a-messy-start-for-march\/","title":{"rendered":"Chart Advisor: A Messy Start for March"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-wednesday-1st-march-2023\">Wednesday, 1st March, 2023<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-when-in-doubt-zoom-out\"><strong>1\/ When in Doubt, Zoom Out<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-a-favorable-period-for-stocks\"><strong>2\/ A Favorable Period for Stocks<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-steel-looks-constructive\"><strong>3\/ Steel Looks Constructive<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-buyers-step-into-natural-gas\"><strong>4\/ Buyers Step Into Natural Gas<\/strong><\/h2>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-when-in-doubt-zoom-out-1\">1\/ <strong>When in Doubt, Zoom Out<\/strong><\/h2>\n\n\n\n<p>Although February was a difficult month for the stock market, it was actually the second consecutive month that the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/russell2000.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">Russell 2000<\/a>&nbsp;ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=IWM&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">IWM<\/a>) closed above its long-term&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/movingaverage.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">moving average (MA)<\/a>. The same is true of its&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/v\/vwap.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">AVWAP<\/a>&nbsp;from the 2020 lows.<\/p>\n\n\n\n<p>The 12-month moving average and the AVWAP coincide at the same level around 185, establishing a critical confluence of interest.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/1-1-1100x537.png\" alt=\"\" class=\"wp-image-185975 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The fact that&nbsp;price remains above this zone means buyers are still in control. Even with the recent selling pressure, the progress from earlier this year has not come undone. Major trend&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/reversal.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">reversals<\/a>&nbsp;like this can take time. Other major averages such as the S&amp;P 500 and the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/d\/djia.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">Dow Jones Industrial Average<\/a>&nbsp;are holding above their respective levels as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-a-favorable-period-for-stocks-1\">2\/ <strong>A Favorable Period for Stocks<\/strong><\/h2>\n\n\n\n<p>With February behind us, we are entering into a favorable time of the calendar year for the stock market.<\/p>\n\n\n\n<p>The average monthly performance of&nbsp;the S&amp;P 500 is shown in the following bar chart:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/2-1-1100x719.png\" alt=\"\" class=\"wp-image-185976 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/719;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>As you can see, both March and April are strong seasonal periods for the equity market.&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/seasonality.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">Seasonality<\/a>&nbsp;is once again a tailwind for stocks. This will remain the case until July.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-steel-looks-constructive-1\">3\/ <strong>Steel Looks Constructive<\/strong><\/h2>\n\n\n\n<p>Yields are on the rise and&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/cyclicalstock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">pro-cyclical<\/a>&nbsp;commodities are responding accordingly.<\/p>\n\n\n\n<p>Base and industrial metals have been resilient, showing signs of strength while most&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/risk-asset.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">risk assets<\/a>&nbsp;have fallen under increased selling pressure.<\/p>\n\n\n\n<p>Steel futures provide an excellent example:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/3-1-1100x561.png\" alt=\"\" class=\"wp-image-185978 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Steel futures climbed over 30% last month, posting a bullish wide-bodied candle. Yet they still trade more than 45% below their 2021 peak.<\/p>\n\n\n\n<p>These figures reveal the near-term strength and the significant repair needed for this industrial metal.<\/p>\n\n\n\n<p>Considering that steel-related equities continue to trade near multi-year highs, an explosive catch-up trade could be underway.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-buyers-step-into-natural-gas-1\">4\/ <strong>Buyers Step Into Natural Gas<\/strong><\/h2>\n\n\n\n<p>After withstanding a steep selloff to start the year, the Natural Gas Fund ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=UNG&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">UNG<\/a>) has stopped falling.<\/p>\n\n\n\n<p>Let\u2019s unpack where and how buyers supported price. Here is a monthly&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/candlestick.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">candlestick chart<\/a>&nbsp;of UNG:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/4-1-1100x537.png\" alt=\"\" class=\"wp-image-185979 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Former&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/z\/zone-of-support.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">support<\/a>&nbsp;marked by the 2020 and 2021 lows held into the monthly close. It\u2019s a very bullish development to witness demand come in at this logical level of support. And it\u2019s equally impressive how the bulls continue to drive prices higher.&nbsp;<\/p>\n\n\n\n<p>Notice the long lower&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/shadow.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">shadow<\/a>&nbsp;on last month\u2019s candle, registering a potential bullish&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/h\/hammer.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">hammer<\/a>. Buyers stepped in and regained control of the market amid overwhelming selling pressure.&nbsp;<\/p>\n\n\n\n<p>We would need to witness upside follow through in the coming weeks to confirm the bullish hammer interpretation. Regardless of how this pattern resolves, near-term&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/marketmomentum.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8458212-20230301&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=030123\" target=\"_blank\" rel=\"noreferrer noopener\">momentum<\/a>&nbsp;has shifted in favor of the bulls.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 1st March, 2023<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-\"> <\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Although February was a difficult month for the stock market, it was actually the second consecutive month that the\u00a0Russell 2000\u00a0ETF (IWM) closed above its long-term\u00a0moving average (MA).<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,17,18,6,8,9,22,23,26,3],"tags":[14275,208,207,7279],"contributors-categories":[13686],"class_list":{"0":"post-185964","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-futures","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-avwap","18":"tag-iwm","19":"tag-spx","20":"tag-ung","21":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: A Messy Start for March | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"Although February was a difficult month for the stock market, it was actually the second consecutive month that the\u00a0Russell 2000\u00a0ETF (IWM) closed...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/185964\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: A Messy Start for March | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Although February was a difficult month for the stock market, it was actually the second consecutive month that the\u00a0Russell 2000\u00a0ETF 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