Stocks continued their march higher with interest rate sensitive issues leading the charge. The Utilities SPDR (XLU) led the sectors higher with a 1.62% gain and the Home Construction iShares (ITB) surged above the mid September trend line. The 20+ Year T-Bond ETF (TLT) broke falling flag resistance and the REIT iShares (IYR) was up over 1.5%. Stocks are getting the best of both worlds right now. First, the government shutdown ended and the debt ceiling was raised, if only for a few more months. Second, Janet Yellen is a shoe in as the next Fed chair and quantitative easing is surely going to continue at the same pace for several more months. Gold also took this news to heart by surging 3% and challenging short-term resistance.
**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
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Key Reports and Events (all times Eastern):
Fri - Oct 18 - 10:00 - Leading Economic Indicators
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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