Boosted by a better-than-expected retail sales report, overbought stocks extended their advance with small gains. The major index ETFs were up fractionally with the S&P Small Cap iShares (+.55%) leading the way. The sectors were mixed with the Consumer Discretionary SPDR (XLY), Industrials SPDR (XLI) and Utilities SPDR (XLU) leading the gainers. Each advanced around a half percent. The Technology SPDR (XLK), Basic Materials SPDR (XLB) and Energy SPDR (XLE) edged lower. There was strength throughout the consumer discretionary sector as the Retail SPDR (XRT), Airline ETF (FAA) and Home Construction iShares (ITB) moved higher. The weakest part of the market continues to come from the materials sector. The Copper Miners ETF (COPX), Metals & Mining SPDR (XME), Gold Miners ETF (GDX) and Steel ETF (SLX) all declined over 1.30%. Blame can go to a strong Dollar, weak commodity prices, an economic contraction in Europe and question surrounding Chinese economic growth.
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Key Reports and Events (all times Eastern):
Thu - Mar 14 - 08:30 – Initial Jobless Claims
Thu - Mar 14 - 08:30 – Producer Price Index (PPI)
Thu - Mar 14 - 10:30 - Natural Gas Inventories
Fri - Mar 15 - 08:30 – Consumer Price Index (CPI)
Fri - Mar 15 - 08:30 - Empire State Manufacturing
Fri - Mar 15 - 09:15 - Industrial Production/Capacity Utilization
Fri - Mar 15 - 09:55 - Michigan Sentiment
Fri - Mar 17 – 12:00 – Erin go Bragh!
Wed – Mar 27 - 23:59 – Government Shut Down Deadline
Wed – May 15 - 23:59 – 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.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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