Stocks continued higher with the tech sector leading once again. In fact, three of the four offensive sectors led what was really a mixed market. XLK and XLF gained over 1%, while XLI advanced .61%. The Consumer Discretionary SPDR (XLY), however, only managed a .24% gain. Within tech, networking stocks resumed their run as the Networking iShares (IGN) surged 1.64%. Semis also built on Tuesday's gains as the Semiconductor SPDR (XSD) advanced over 1%. Mining stocks also gained with the Copper Miners ETF (COPX) surging over 2% and the Metals & Miners SPDR (XME) gaining almost 2%. The chart below shows Spot Copper ($COPPER) breaking channel resistance in December and pulling back in January. Broken resistance is turning into support and the industrial metal is firming. A move above 3.4 would break short-term resistance and signal a continuation higher. The indicator window shows the Copper Miners ETF (COPX) with a potential double bottom. Admittedly, I am not a big fan of double bottoms in downtrends because there are often several false signals before a valid one. Nevertheless, COPX is bouncing off the summer lows and appears headed for a date with resistance from the autumn highs.
**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):
Wed - Jan 15 - 07:00 - MBA Mortgage Index
Wed - Jan 15 - 08:30 - PPI
Wed - Jan 15 - 10:30 - Crude Inventories
Wed - Jan 15 - 14:00 - Fed's Beige Book
Thu - Jan 16 - 08:30 - Initial Claims
Thu - Jan 16 - 08:30 - CPI
Thu - Jan 16 - 10:00 - NAHB Housing Market Index
Thu - Jan 16 - 10:30 - Natural Gas Inventories
Fri - Jan 17 - 08:30 - Housing Starts/Building Permits
Fri - Jan 17 - 09:15 - Industrial Production
Fri - Jan 17 - 09:55 - Michigan Sentiment
Fri - Jan 17 - 10:00 - JOLTS - Job Openings
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.
