The broad market indices edged higher on Thursday, but Apple dominated ETFs moved lower (QQQ and XLK). Note that the Nasdaq 100 Equal-Weight ETF (QQEW) advanced .43% and the FirstTrust Internet ETF (FDN) was up over 2%. The Basic Materials SPDR (XLB) was up on the day, but several industry group ETFs within the materials sector were hit hard. The Coal Vectors ETF (KOL), Copper Miners ETF (COPX), the Metals & Mining SPDR (XME), the Silver Miners ETF (SIL) and the Gold Miners ETF (GDX) declined 1% or more. GDX and SIL both broke below medium-term support levels and forged lower lows.
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Key Reports and Events:
Fri - Jan 25 - 10:00 - New Home Sales
Fri – Mar 01 - 23:59 – Sequester Takes Effect
Wed – Mar 27 - 23:59 – Government Shut Down Deadline
Wed – May 15 - 23:59 – New Debt Ceiling Deadline
Charts of Interest: Tuesday and Thursday
This commentary and charts-of-interest are designed to stimulate thinking. This analysis is
not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise).
We all need to think for ourselves when it comes to trading our own accounts. First, it is
the only way to really learn. Second, we are the only ones responsible for our decisions.
Think of these charts as food for further analysis. Before making a trade, it is important
to have a plan. Plan the trade and trade the plan. Among other things, this includes setting
a trigger level, a target area and a stop-loss level. It is also important to plan for three
possible price movements: advance, decline or sideways. Have a plan for all three scenarios
BEFORE making the trade. Consider possible holding times. And finally, look at overall market
conditions and sector/industry performance.
