Stocks surged on Monday with the Dow Diamonds (DIA) leading the way (+1.07%). All sectors were higher with the industrials, finance and technology sectors gaining over 1%. The consumer discretionary sector lagged a bit with a .67% gain. Housing stocks will be in focus today and the FOMC will steal the show on Wednesday. As far as intraday breadth is concerned, the Nasdaq AD Line broke support, but the other short-term breadth indicators remain bullish. The Nasdaq AD Volume Line hit a new high and remains in a strong uptrend. The NYSE AD Line and AD Volume Line bounced off support zones. These support zones should be watched closely for signs of weakness that could reverse the short-term uptrends. High-Low Percent remains in positive territory for both the NYSE and Nasdaq.
**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):
Tue - Mar 18 - 08:30 - Housing Starts / Building Permits
Tue - Mar 18 - 08:30 - CPI
Wed - Mar 19 - 07:00 - MBA Mortgage Index
Wed - Mar 19 - 10:30 - Crude Inventories
Wed - Mar 19 - 14:00 - FOMC Rate Decision
Thu - Mar 20 - 08:30 - Initial Claims
Thu - Mar 20 - 08:30 - Continuing Claims
Thu - Mar 20 - 10:00 - Existing Home Sales
Thu - Mar 20 - 10:00 - Philadelphia Fed
Thu - Mar 20 - 10:00 - Leading Indicators
Thu - Mar 20 - 10:30 - Natural Gas Inventories
Fri - Mar 21 - 09:00 - Happy Friday!
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.
