Top Ten Charts to Watch for February 2025

Let’s dive into February 2025 with the top ten charts to watch, each one offering a glimpse into the market’s heartbeat. This selection highlights what’s shaping the current narrative—so, are you ready to see what’s making waves?

First up: the semiconductor ETF, SMH.

Semiconductors like Nvidia and AMD have hit a few speed bumps lately, thanks to news from China’s Deep Seq AI. Did it derail them? Not quite. Despite a dramatic gap lower, SMH found solid support. Now, we’re watching closely: will it climb above 260 or slide below 235? The answer could set the tone for February.

Source: StockCharts.com

Costco’s story is all about momentum.

Blasting past the symbolic $1,000 mark, Costco is painting a picture of incredible strength. But can it keep up this record-breaking pace? February could reveal if this consumer powerhouse has more gas in the tank—or if it’s time to ease off the throttle.

Then there’s Alphabet, which feels like a puzzle.

Earnings disappointed, causing a slight gap down, yet the stock clings above its 50-day moving average. Is this just a hiccup on its upward path or an early warning of turbulence ahead? Alphabet’s next move could speak volumes about broader market sentiment.

Source: StockCharts.com

Travel giant Marriott keeps climbing.

With a smooth ascent past December’s highs, it’s feeding optimism in travel stocks. But how far can this momentum carry it? Marriott’s steady rise reminds us of the strength in consumer discretionary names, but we’ll see how long it can hold its ground.

Visa’s chart is textbook strength.

A classic cup-and-handle pattern and consistent higher highs make it a standout. Will resistance finally slow it down, or will it continue its strong upward stride? Visa’s steady march has our full attention.

Source: StockCharts.com

So, there you have it—the first five of ten compelling stories playing out on the charts. Each one shines a light on a different part of the market, and together, they paint a vivid picture of what February might hold.

Check out the rest of our Top Ten Charts to Watch over at our YouTube channel. And did I miss any that you would include on your own list of top ten charts? Don’t forget to drop a comment and let me know!

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Thanks for reading, and don’t forget to check out CHART THIS with Dave Keller, airing weekdays at 5 PM Eastern, for daily market close review. If you’re ready to take your market knowledge to the next level, check out our Market Misbehavior Premium Membership for exclusive access to in-depth analysis, actionable insights, and strategies designed to help you navigate any market condition with confidence. Don’t miss out—let’s keep building your investing edge together. Join Now!

RR#6,
Dave

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

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

Trend Following: A Path to Strength in Investing

Today, I want to share a key investing approach that has completely reshaped how I view the markets—trend following, or as I like to call it, relative strength investing. Let’s break it down together and explore why it’s become such an essential part of my strategy.

What Is Relative Strength Investing?

At its core, relative strength investing is about one simple idea: focus on strength, not weakness. When I first started out, I was all about trying to "buy low and sell high." It sounded great in theory, but in practice, I often found myself holding onto stocks that kept sinking lower. It was like trying to catch falling knives—not the most rewarding experience, to say the least.

Everything changed when I began working with growth investors and learned to spot signs of strength instead. By prioritizing stocks that were already doing well, I started seeing more consistent results. This approach mirrors how institutional investors operate—they look for strong, emerging trends and invest in them for the long haul. That’s the beauty of trend following: it’s about riding sustained waves of strength.

How to Spot a Strong Chart

What does a strong chart actually look like? Let’s use JP Morgan (JPM) as an example. After a solid 2024, it continued to climb in early 2025. A few key things stand out in a strong chart:

• Higher highs and higher lows: The stock price steadily climbs over time.

• Upward-sloping moving averages: These show the trend is on your side.

• Momentum indicators like the RSI: When the RSI hits overbought levels during rallies but holds steady near 40 during pullbacks, it signals a healthy, bullish structure.

Source: StockCharts.com

But the most important clue is relative strength—a stock’s performance compared to the broader market (like the S&P 500). If you see a stock’s relative strength line improving, it means it’s outperforming the market—a key signal for any portfolio.

Real-Life Examples of Strength

Let’s look at a couple of examples:

• Meta Platforms: After hitting a low in October 2022, Meta turned things around in a big way. Its transition from underperformance to consistent outperformance showed that improving relative strength often signals a major shift.

• Palantir: Early 2023 was tough for Palantir, but it rebounded with momentum indicators turning bullish. Its relative strength started climbing, proving that stocks making new highs often hold promising opportunities.

Seeking Alpha

I owe a lot of my insights to Seeking Alpha. Their tools and data have been game-changers for my process. Their quant model evaluates stocks on a variety of factors—like valuation, growth, profitability, and most importantly, momentum. This focus on momentum aligns perfectly with a strength-first mindset.

One standout tool is Alpha Picks, which curates stocks using Seeking Alpha’s quant methodology. The results have been impressive, and it’s a fantastic resource for finding strength-focused opportunities.

Parting Thoughts

As we move through 2025, remember: buying strength isn’t risky—it’s strategic. Focus on stocks with strong price momentum, improving relative strength, and upward trends. Don’t be afraid to invest in stocks at new highs—they often signal even more growth ahead. Whether it’s JP Morgan, Meta, or Palantir, trend following consistently leads to resilient investment opportunities.

Want to dive deeper? Check out Seeking Alpha for a special offer on Seeking Alpha’s Alpha Picks. Embrace strength, and you’ll likely find yourself on a path to greater success.

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Thanks for reading, and don’t forget to check out CHART THIS with Dave Keller, airing weekdays at 5 PM Eastern, for my daily market review. If you’re ready to take your market knowledge to the next level, check out our Market Misbehavior Premium Membership for exclusive access to in-depth analysis, actionable insights, and strategies designed to help you navigate any market condition with confidence. Don’t miss out—let’s keep building your investing edge together. Join Now!

RR#6,
Dave

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

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