Stocks treaded water with mixed trading on Monday. The Nasdaq 100 ETF (QQQ) edged higher with a .22% gain, while the Russell 2000 ETF (IWM) edged lower with a .20% loss. The sectors were mixed with the Technology SPDR (XLK) gaining .54% and the Healthcare SPDR (XLV) loosing .51%. Homebuilders were under pressure after existing home sales disappointed with a decline of 1.9%. The Home Construction iShares (ITB) fell around 1.5% and weighed on the broader market. The employment report will be released today before the open and this could further affect the 10-year Treasury Yield ($TNX), which could in turn affect interest rate sensitive stocks. Also keep in mind that we are in the middle of earnings season.
**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):
Tue - Oct 22 - 08:30 - Nonfarm Payrolls
Tue - Oct 22 - 10:30 - Natural Gas Inventories
Wed - Oct 23 - 07:00 - MBA Mortgage Index
Wed - Oct 23 - 10:30 - Crude Inventories
Thu - Oct 24 - 08:30 - Initial Claims
Thu - Oct 24 - 10:00 - New Home Sales
Thu - Oct 24 - 10:30 - Natural Gas Inventories
Fri - Oct 25 - 08:30 - Durable Orders
Fri - Oct 25 - 09:55 - Michigan Sentiment
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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