QQQ Tests January Lows - USO Hits New Low for 2013
Stocks moved lower again on Thursday with the Nasdaq 100 Equal-Weight ETF (QQEW) leading the way (down 1.22%). This means techs as a whole were relatively weak. Small-caps were also relatively weak with the Russell 2000 ETF (IWM) falling around 1%. Note that QQEW and IWM led on the way up and these two have the most to correct on any pullback. Eight of the nine sectors were down, but the losses were contained and did not exceed 1%. The Consumer Staples SPDR (XLP) was the lone gainer as money moved into defensive areas of the market. Techs were hit with sizable declines in the Networking iShares (IGN) and Semiconductor SPDR (XSD). These two have come a long way since mid November and are due for a corrective period.
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Key Reports and Events:
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.
