**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 continued to plow higher as the Russell 2000 ETF (IWM) advanced around 1% and the Nasdaq 100 ETF (QQQ) gained .67% on the day. Eight of the nine sectors were higher, but the gains were muted as the Consumer Staples SPDR (XLP) led with a mere .62% gain. The Basic Materials SPDR (XLB) edged lower. Retails caught a bid with the Retail SPDR (XRT) and Market Vectors Retail ETF (RTH) gaining around 1%. Techs also got their wind back with the Networking iShares (IGN), FirstTrust Internet ETF (FDN) and Semiconductor SPDR (XSD) advancing around 1%. The most impressive gain perhaps came from the Regional Bank SPDR (KRE) as it scored its biggest gain of the month and extended its three week rally. KRE has been lagging this month, but Tuesday's gain could foreshadow a resumption of leadership from this group. Fed day is finally here with the policy statement expected at 2PM. As soon as this statement passes, the financial media can start debating what will happen at the next Fed meeting (ad nauseam).
be construed as a recommendation to buy, sell or sell-short said securities**
Stocks continued to plow higher as the Russell 2000 ETF (IWM) advanced around 1% and the Nasdaq 100 ETF (QQQ) gained .67% on the day. Eight of the nine sectors were higher, but the gains were muted as the Consumer Staples SPDR (XLP) led with a mere .62% gain. The Basic Materials SPDR (XLB) edged lower. Retails caught a bid with the Retail SPDR (XRT) and Market Vectors Retail ETF (RTH) gaining around 1%. Techs also got their wind back with the Networking iShares (IGN), FirstTrust Internet ETF (FDN) and Semiconductor SPDR (XSD) advancing around 1%. The most impressive gain perhaps came from the Regional Bank SPDR (KRE) as it scored its biggest gain of the month and extended its three week rally. KRE has been lagging this month, but Tuesday's gain could foreshadow a resumption of leadership from this group. Fed day is finally here with the policy statement expected at 2PM. As soon as this statement passes, the financial media can start debating what will happen at the next Fed meeting (ad nauseam).
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Key Reports and Events (all times Eastern):
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.
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