Stocks were mostly weak on Thursday, but selling pressure was modest and there were a few pockets of strength. The Russell 2000 ETF (IWM) led the way lower with a .58% decline. The Nasdaq 100 Equal-Weight ETF (QQEW) managed a .03% gain on the day. Seven of the nine sector SPDRs were down. Of note, the Consumer Discretionary SPDR (XLY) bucked the trend with a small gain and the Industrials SPDR (XLI) closed a fraction higher. The Finance SPDR (XLF) led the way lower with a 1.06% loss as big banks weighed. The Home Construction iShares (ITB) took another hit as the 10-year Treasury Yield ($TNX) edged higher. Semis gave the technology sector a boost as the Semiconductor SPDR (XSD) surged around 2%. Metals were hit hard as the US Dollar Index ($USD) surged to complete its biggest five day move since early September. The overall trend for the Dollar remains down, but this surge was enough to rattle commodities as copper, oil, gold and silver fell sharply, as did related stocks. Nevertheless, note that the metals ETFs are still up over the past month.
**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 - Nov 01 - 10:00 - ISM Manufacturing Index
Fri - Nov 01 - 14:00 - Auto Sales/Truck Sales
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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