IWM Makes it Eight Days Straight - GLD Extends Consolidation
Stocks continued on their merry Thursday with the Russell 2000 ETF (IWM) leading the way (+.61%). Note that IMW is up eight days straight. The S&P 500 ETF (SPY) is trading at its highest level of the year as the market went from short-term oversold to short-term overbought in just eight days. IWM and SPY are up over 4% in eight days. The Consumer Discretionary SPDR (XLY) and the Finance SPDR (XLF) are up over 5%, while the Home Construction iShares (ITB) is up over 10% from its late February low. Stocks are once again priced for perfection. At this point, Tuesday's gaps hold the key to the short-term uptrend. These gaps are bullish as long as they hold. A move below Monday's close would fill these gaps and be short-term bearish.
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Key Reports and Events (all times Eastern):
Fri - Mar 08 - 08:30 - Employment Report
Wed - Mar 27 - 23:59 - Government Shut Down Deadline
Wed - May 15 - 23:59 - Debt Ceiling Deadline
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.
