**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
The bulls got into gear on Monday and pushed stocks higher across the board. The Russell 2000 ETF (IWM) led the major index ETFs with a 1.57% gain. It is positive to see small-caps leading because they had been lagging the last few weeks. All sectors were up with the industrials and materials sectors showing relative strength. The Home Construction iShares (ITB) surged on the heels of a positive earnings report from Hovnanian (HOV). ITB is on the verge of breaking its late August highs and negating the prior support break. Techs continued strong as the Networking iShares (IGN) added another 1.5% and the Semiconductor SPDR (XSD) advanced over 1%. Strength in Asia lifted materials-related stocks with the Metals & Mining SPDR (XME), Coal Vectors ETF (KOL), Steel ETF (SLX) and Copper Miners ETF (COPX) surging over 2%. The bulls are expanding their reach as SPY and the broad-market ETFs attempt to end their corrections and continue their bigger uptrends. Apple will finally announce its new products today so we can look forward to another few days of news saturation from this one hardware behemoth.
be construed as a recommendation to buy, sell or sell-short said securities**
The bulls got into gear on Monday and pushed stocks higher across the board. The Russell 2000 ETF (IWM) led the major index ETFs with a 1.57% gain. It is positive to see small-caps leading because they had been lagging the last few weeks. All sectors were up with the industrials and materials sectors showing relative strength. The Home Construction iShares (ITB) surged on the heels of a positive earnings report from Hovnanian (HOV). ITB is on the verge of breaking its late August highs and negating the prior support break. Techs continued strong as the Networking iShares (IGN) added another 1.5% and the Semiconductor SPDR (XSD) advanced over 1%. Strength in Asia lifted materials-related stocks with the Metals & Mining SPDR (XME), Coal Vectors ETF (KOL), Steel ETF (SLX) and Copper Miners ETF (COPX) surging over 2%. The bulls are expanding their reach as SPY and the broad-market ETFs attempt to end their corrections and continue their bigger uptrends. Apple will finally announce its new products today so we can look forward to another few days of news saturation from this one hardware behemoth.
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Key Reports and Events (all times Eastern):
Wed - Sep 11 - 07:00 - MBA Mortgage Index
Wed - Sep 11 - 10:30 - Crude Oil Inventories
Thu - Sep 12 - 08:30 - Initial Jobless Claims
Thu - Sep 12 - 10:30 - Natural Gas Inventories
Fri - Sep 13 - 08:30 - Retail Sales
Fri - Sep 13 - 08:30 - Producer Price Index (PPI)
Fri - Sep 13 - 09:55 - Michigan Sentiment
Tue – Sep 17 – 09:00 – FOMC Meeting Begins
Wed – Sep 18 – 14:15 – FOMC Policy Statement
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.
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