Stocks took a breather on Monday as the major index ETFs traded mixed. The Nasdaq 100 ETF (QQQ) closed with a miniscule gain, while the S&P 500 SPDR (SPY) closed with a fractional loss. The sectors were also mixed with the five down and four up. The HealthCare SPDR (XLV) led with a .42% gain. The Finance SPDR (XLF) managed a gain and showed some relative strength again. Overall, the major index ETFs remain extended and the flat trading of the last few days is a correction of sorts. The chart below shows the AD Lines, AD Volume Lines and Net New Highs for the Nasdaq and NYSE using intraday data (30-minute). The AD Lines and AD Volume Lines surged in February and hit new highs for the move in early March. The early March lows mark short-term support. Net New Highs fell back over the last few days, but remain positive and still supportive of a short-term uptrend. Even though the short-term uptrend looks extended, it is still a work in progress as long as these breadth indicators remain positive.
**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 11 - 10:00 - JOLTS - Job Openings
Wed - Mar 12 - 07:00 - MBA Mortgage Index
Wed - Mar 12 - 10:30 - Crude Oil Inventories
Thu - Mar 13 - 08:30 - Initial Jobless Claims
Thu - Mar 13 - 08:30 - Retail Sales
Thu - Mar 13 - 10:00 - Business Inventories
Thu - Mar 13 - 10:30 - Natural Gas Inventories
Fri - Mar 14 - 08:30 - Producer Price Index (PPI)
Fri - Mar 14 - 09:55 - Michigan Sentiment
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.
