IWM Hits Channel Trend Line - USO Bounces off Support
Stocks marched higher again on Tuesday with small-caps leading the way. The Russell 2000 ETF (IWM) gained .88% and the S&P Small-cap ETF (IJR) advanced 1.10% on the day. Techs also participated with the Nasdaq 100 ETF (QQQ) hitting a new high for 2013. Eight of the nine sectors were higher with the Energy SPDR (XLE), Finance SPDR (XLF) and Consumer Staples SPDR (XLP) advancing around 1%. The Materials SPDR (XLB) was the lone loser because industrial metals declined rather sharply. China, as usual, got the blame because the Shanghai Composite ($SSEC) fell sharply after traders returned from a one week holiday. I am not sure I buy into that because the Metals and Mining ETF (XME), Copper Miners ETF (COPX) and Gold Miners ETF (GDX) have been relatively weak the entire year.
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Key Reports and Events:
Wed - Feb 20 - 07:00 - MBA Mortgage Index
Wed - Feb 20 - 08:30 - Housing Starts/Building Permits
Wed - Feb 20 - 08:30 - Producer Price Index (PPI)
Wed - Feb 20 - 14:00 - FOMC Minutes
Thu - Feb 21 - 08:30 - Jobless Claims
Thu - Feb 21 - 08:30 - Consumer Price Index (CPI)
Thu - Feb 21 - 10:00 - Existing Home Sales
Thu - Feb 21 - 10:00 - Philadelphia Fed
Thu - Feb 21 - 10:00 - Leading Economic Indicators
Thu - Feb 21 - 10:30 - Natural Gas Inventories
Thu - Feb 21 - 11:00 - Oil Inventories
Sun - Feb 24 - 10:00 - Italian Parliamentary Elections
Fri - Mar 01 - 23:59 - Sequester Takes Effect (unless...)
Wed - Mar 27 - 23:59 - Government Shut Down Deadline
Wed - May 15 - 23:59 - New Debt Ceiling Deadline lexicon prognosis
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.
