**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
After big moves on Wednesdays, the markets took a breather on Thursday and traded relatively flat. Stocks were flat, treasuries pulled back a little, gold stalled, the Dollar stalled and oil fell over 1%. It's been one heck of a month for stocks. All sectors are up with the Industrials SPDR (XLI) leading the way (up 8.45%). The Consumer Discretionary SPDR (XLY) and Basic Materials SPDR (XLB) are not far behind and showing relative strength as well. The three defensive sectors are also up substantially over the last three weeks, but they are lagging the broader market. Relative strength from industrials, finance and consumer discretionary supports the overall uptrend in stocks.
be construed as a recommendation to buy, sell or sell-short said securities**
After big moves on Wednesdays, the markets took a breather on Thursday and traded relatively flat. Stocks were flat, treasuries pulled back a little, gold stalled, the Dollar stalled and oil fell over 1%. It's been one heck of a month for stocks. All sectors are up with the Industrials SPDR (XLI) leading the way (up 8.45%). The Consumer Discretionary SPDR (XLY) and Basic Materials SPDR (XLB) are not far behind and showing relative strength as well. The three defensive sectors are also up substantially over the last three weeks, but they are lagging the broader market. Relative strength from industrials, finance and consumer discretionary supports the overall uptrend in stocks.
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Key Reports and Events (all times Eastern):
Fri - Sep 20 - 08:30 – Happy Friday!
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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