ITB Reverses Downswing and GLD Bounces off October Low
The bulls continue to press their case as the major index ETFs scored modest gains for the week. It is not as if buying pressure is especially strong. Buying pressure, however, is clearly stronger than selling pressure. In fact, selling pressure is pretty much non-existent. The Nasdaq 100 Equal-Weight ETF (QQEW) and the S&P 400 MidCap SPDR (MDY) led the way with 2% gains on the week. All sectors were up with the consumer discretionary and healthcare sectors leading the way. Strength in retail and housing stocks lifted this economically sensitive sector. It is hard to argue with a 3.72% surge in the Retail SPDR (XRT) and a 4.37% gain in the Home Construction SPDR (ITB). It will be a big week for retail because the Commerce Department reports October retail sales on Wednesday morning. Elsewhere, the materials-related stocks were weak with the Copper Miners ETF (COPX) loosing 2.42% and the Gold Miners ETF (GDX) down a fraction. Copper may get a boost today because the Shanghai Composite ($SSEC) advanced over 2% on Monday.
**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):
Mon - Nov 18 - 10:00 - NAHB Housing Market Index
Wed - Nov 20 - 07:00 - MBA Mortgage Index
Wed - Nov 20 - 08:30 - Retail Sales
Wed - Nov 20 - 08:30 - Consumer Price Index (CPI)
Wed - Nov 20 - 10:00 - Existing Home Sales
Wed - Nov 20 - 10:00 - Business Inventories
Wed - Nov 20 - 10:30 - Oil Inventories
Wed - Nov 20 - 14:00 - FOMC Minutes
Thu - Nov 21 - 08:30 - Initial Jobless Claims
Thu - Nov 21 - 08:30 - Producer Price Index (PPI)
Thu - Nov 21 - 10:00 - Philadelphia Fed
Thu - Nov 21 - 10:30 - Natural Gas Inventories
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.
