**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
Stocks remain strong overall and look to get stronger because S&P 500 futures are trading around 1% higher in pre-market (4AM). Stocks and gold are higher on news that Lawrence Summers has dropped out of contention for Fed Chairman. Meanwhile, bonds and the Dollar are lower. The S&P 500 ETF (SPY) and major index ETFs are simply extending existing uptrends, while bonds are extending an existing downtrend. The Dollar is on the verge of a significant support break and gold may challenge last week's support break. Even though stocks are slated for a strong open, I would not be surprised to see flat trading after the open as the market awaits the FOMC meeting on Tuesday-Wednesday. To taper or not to taper, that is really just a question for the Fed. Truth be told, we would be wise to ignore this taper talk stuff and focus on price action when it comes to stocks. Bonds are trending down and this is positive for stocks and the economy. Stocks are trending up because buying pressure continues to outpace selling pressure.
be construed as a recommendation to buy, sell or sell-short said securities**
Stocks remain strong overall and look to get stronger because S&P 500 futures are trading around 1% higher in pre-market (4AM). Stocks and gold are higher on news that Lawrence Summers has dropped out of contention for Fed Chairman. Meanwhile, bonds and the Dollar are lower. The S&P 500 ETF (SPY) and major index ETFs are simply extending existing uptrends, while bonds are extending an existing downtrend. The Dollar is on the verge of a significant support break and gold may challenge last week's support break. Even though stocks are slated for a strong open, I would not be surprised to see flat trading after the open as the market awaits the FOMC meeting on Tuesday-Wednesday. To taper or not to taper, that is really just a question for the Fed. Truth be told, we would be wise to ignore this taper talk stuff and focus on price action when it comes to stocks. Bonds are trending down and this is positive for stocks and the economy. Stocks are trending up because buying pressure continues to outpace selling pressure.
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
Key Reports and Events (all times Eastern):
Mon - Sep 16 - 08:30 - Empire Manufacturing
Mon - Sep 16 - 09:15 - Industrial Production/Capacity Utilization
Tue - Sep 17 - 08:30 – Consumer Price Index (CPI)
Tue - Sep 17 - 10:00 - NAHB Housing Market Index
Tue – Sep 17 – 10:00 – FOMC Meeting Begins
Wed - Sep 18 - 07:00 - MBA Mortgage Index
Wed - Sep 18 - 08:30 - Housing Starts/Building Permits
Wed - Sep 18 - 10:30 - Crude Oil Inventories
Wed - Sep 18 - 14:00 - FOMC Policy Statement
Thu - Sep 19 - 08:30 – Initial Jobless Claims
Thu - Sep 19 - 08:30 - Current Account Balance
Thu - Sep 19 - 10:00 - Existing Home Sales
Thu - Sep 19 - 10:00 - Philadelphia Fed
Thu - Sep 19 - 10:00 - Leading Indicators
Thu - Sep 19 - 10:30 - Natural Gas Inventories
Fri – Sep 06 – 08:30 – Employment Report
Sun – Sep 22 – 10:00 – German Elections
Tue – Oct 15 - 09:00 – 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.
Learn More
