**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 were mostly higher on Wednesday, but the gains were small and there were pockets of weakness in the market. The Dow Industrials SPDR (DIA) led the way with a .90% gain, but the Russell 2000 ETF (IWM) only managed a .05% gain. The Nasdaq 100 ETF (QQQ) and the Technology SPDR (XLK) edged lower because of weakness in Apple (APPL) and QualCom (QCOM). The Home Construction iShares (ITB) put in a good performance with a 1.8% gain and challenge to resistance from the late August high. Overall, the major index ETFs are in short-term uptrends, but getting a little overbought after sharp moves the last seven days. The S&P 500 is up 3.5% this month with the Consumer Discretionary SPDR (XLY), Industrials SPDR (XLI) and Finance SPDR (XLF) leading the way. These three are up over 4% for month-to-date. The Utilities SPDR (XLU) is the only sector showing a loss and remains the weakest of the lot.
be construed as a recommendation to buy, sell or sell-short said securities**
Stocks were mostly higher on Wednesday, but the gains were small and there were pockets of weakness in the market. The Dow Industrials SPDR (DIA) led the way with a .90% gain, but the Russell 2000 ETF (IWM) only managed a .05% gain. The Nasdaq 100 ETF (QQQ) and the Technology SPDR (XLK) edged lower because of weakness in Apple (APPL) and QualCom (QCOM). The Home Construction iShares (ITB) put in a good performance with a 1.8% gain and challenge to resistance from the late August high. Overall, the major index ETFs are in short-term uptrends, but getting a little overbought after sharp moves the last seven days. The S&P 500 is up 3.5% this month with the Consumer Discretionary SPDR (XLY), Industrials SPDR (XLI) and Finance SPDR (XLF) leading the way. These three are up over 4% for month-to-date. The Utilities SPDR (XLU) is the only sector showing a loss and remains the weakest of the lot.
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Key Reports and Events (all times Eastern):
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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