XLY Leads the Market with a New High
The major index ETFs edged higher with modest gains. Selling pressure hit some areas of the market, but there were some pockets of serious strength that lifted the stocks. In particular, the Home Construction iShares (ITB) continued its rise with a 2.84% advance on the day. Strength in housing helped the Consumer Discretionary SPDR (XLY) to a 1+ percent gain and a fresh 52-week high. The economy cannot be that bad if the most economically sensitive sector is hitting a new high. Gold stood out as the Gold Miners ETF (GDX) surged over 3% and the Silver Miners (SIL) gained almost 4%.
**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):
Thu - Oct 24 - 10:30 - Natural Gas Inventories
Fri - Oct 25 - 08:30 - Durable Orders
Fri - Oct 25 - 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.
