Stocks continued their meandering ways with the Nasdaq 100 ETF (QQQ) edging lower and the Russell 2000 ETF (IWM) edging higher. There were, however, some significant movers that support overall market strength. IWM hit a new high and led the market (small-caps). The Retail SPDR (XRT) extended its run and pushed the Consumer Discretionary SPDR (XLY) towards its yearend high. The Home Construction iShares (ITB) also surged and hit a new high. The key tech groups were also strong with the Semiconductor SPDR (XSD) and Internet ETF (FDN) also hitting new highs. The PerfChart below shows ITB and the Biotech SPDR (XBI) leading the market over the past week. Also notice that XSD, the Retail SPDR (XRT) and the Regional Bank SPDR (KRE) are strong. Even though the broad market has meandered the last few days, I am impressed with the pockets of strength in the right place. Strength in the 20+ YR T-Bond ETF (TLT) is the only potential negative out there. TLT surged another .53% on Wednesday and this move into Treasuries suggest that bond traders are less positive on the economy.
**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):
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.
