Programming note: I am taking some holiday this week and Art's Charts will not be updated on Tuesday, Wednesday and Friday. The market is closed on Thursday and will close early on Friday (1PM). Stocks were relatively mixed last week, but some groups led the market and the positive outlook continues for stocks. Small-caps found there mojo and led the market over the last two weeks. The finance sector also sprang to life and surged to a new high last week. While I am a little concerned with last week's relative weakness in the tech and consumer discretionary sectors, there is clearly enough strength elsewhere to power the market for now. Healthcare is also strong as XLV hit a new high last week. The chart below shows the S&P 1500 AD Line breaking out in mid November and hitting a new high last week. Both the index and this key breadth indicator hit new highs, which means participation in the advance is broad.
**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):
Mon - Nov 25 - 10:00 - Pending Home Sales
Tue - Nov 26 - 08:30 - Housing Starts/Building Permits Sep
Tue - Nov 26 - 08:30 - Housing Starts/Building Permits Oct
Tue - Nov 26 - 09:00 - Case-Shiller 20-city Index
Tue - Nov 26 - 09:00 - FHFA Housing Price Index
Tue - Nov 26 - 10:00 - Consumer Confidence
Wed - Nov 76 - 07:00 - MBA Mortgage Index
Wed - Nov 76 - 08:30 - Initial Jobless Claims
Wed - Nov 76 - 08:30 - Durable Goods Orders
Wed - Nov 76 - 09:45 - Chicago PMI
Wed - Nov 76 - 09:55 - Michigan Sentiment
Wed - Nov 76 - 10:00 - Leading Indicators
Wed - Nov 76 - 10:30 - Crude Oil Inventories
Wed - Nov 76 - 10:30 - Natural Gas Inventories
Thu - Nov 28 - 08:00 - Happy Thanksgiving
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.
