Stocks started strong and remained strong most of the day, but selling pressure hit in the afternoon and stocks gave up some of their gains. The Russell 2000 ETF (IWM) led the way with a .73% gain and the Nasdaq 100 ETF (QQQ) advanced .64%. Seven of the nine sectors were up with the Materials SPDR (XLB) and Utilities SPDR (XLU) falling. The Energy SPDR (XLE) led the way with a 1.50% gain. Semis led the tech sector higher as the Semiconductor SPDR (XSD) surged over 2% and hit another new high. Banks also caught a bid as the Regional Bank SPDR (KRE) gained 1.91%, which is a positive sign because this group was lagging. Even though the S&P 500 SPDR (SPY) hit a new high intraday, only three of the nine sectors are up year-to-date (XLV, XLU and XLK). It is interesting to note that the Consumer Discretionary SPDR (XLY) and Consumer Staples SPDR (XLP) are the two weakest sectors. However, notice that XLY is holding up better than XLP, which suggest that the market is not as defensive as it may seem with XLU and XLV up sharply.
**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
**************************************************************
**************************************************************
**************************************************************
**************************************************************
***************************************************************
Key Reports and Events (all times Eastern):
Tue - Feb 25 - 09:00 - Case-Shiller Housing Index
Tue - Feb 25 - 09:00 - FHFA Housing Price Index
Tue - Feb 25 - 10:00 - Consumer Confidence
Wed - Feb 26 - 07:00 - MBA Mortgage Index
Wed - Feb 26 - 10:00 - New Home Sales
Wed - Feb 26 - 10:30 - Crude Oil Inventories
Thu - Feb 27 - 08:30 - Initial Jobless Claims
Thu - Feb 27 - 08:30 - Durable Good Orders
Thu - Feb 27 - 10:30 - Natural Gas Inventories
Fri - Feb 28 - 08:30 - GDP
Fri - Feb 28 - 09:45 - Chicago PMI
Fri - Feb 28 - 09:55 - Michigan Sentiment
Fri - Feb 28 - 10:00 - Pending Home 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.
