Traders Gonna Trade, A Year of Heightened Swings & Equity Index Annuities

The Money Wise guys wrap up February with a look at market performance, noting a mixed week where the Dow rose 413 points (1%), while the S&P 500 and NASDAQ fell 1% and 3.5%, respectively. February was historically in line with expectations as a weak month, with all three major indexes closing lower—down 1.6% (Dow), 1.4% (S&P 500), and 4% (NASDAQ). Despite recent declines, year-to-date numbers remain positive for the Dow (+3%) and S&P 500 (+1.2%), though the NASDAQ sits at -2.4%. The guys highlight the ongoing trading range in the S&P 500, which has been oscillating between 6,100 and 5,775 since December. A notable surge in buying volume on Friday—the highest of 2025—pushed markets higher into the weekend, fueling speculation about whether this was the start of a rebound or merely short sellers covering positions.

Beyond the numbers, the conversation turned to the forces driving volatility, from political headlines to month-end hedge fund positioning. A sharp 800-point Dow reversal on Friday, sparked by political drama in the White House, underscored how reactive markets have become to news cycles. The team reiterated that 2025 is shaping up to be a year of heightened swings, driven largely by ongoing speculation about tariffs and Federal Reserve policy. With traders reacting to every development, maintaining a long-term perspective remains key. The takeaway? Noise and short-term fluctuations will continue, but investors who stay disciplined and focus on the bigger picture will be better positioned amid the turbulence.

Traders Gonna Trade

Friday’s surge in buying volume—the highest of 2025—sparked debate over whether it signaled genuine bullish momentum or was simply short sellers closing positions ahead of the weekend. With trading volume 44% above the daily moving average, the spike in activity stood out, but the real question remains: were investors stepping in with conviction, or were hedge funds and traders locking in gains after a volatile month? Given that February ended in the red for all major indexes, some argue that fund managers were closing shorts to secure profits before monthly performance calculations. Whether this buying pressure carries into next week or fades as a temporary end-of-month adjustment will be a key indicator of market direction moving forward.

In the second hour, the Money Wise guys discuss Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.