Stocks edged higher in mixed trading. The major index ETFs ended the day with small gains, but the sectors were split. In particular, the Finance SPDR (XLF) and the Consumer Discretionary SPDR (XLY) edged lower, while the Technology SPDR (XLK) and the Industrials SPDR (XLI) moved higher. Buoyed by recent strength in Chinese equities, the Basic Materials SPDR (XLB) led the way with a .64% gain. The Coal Vectors ETF (KOL), Metals & Mining SPDR (XME), Copper Miners ETF (COPX) and Steel ETF (SLX) all gained over 1%. There were also good moves in the Networking iShares (IGN) and Semiconductor SPDR (XSD). All in all, it was not a bad day for the bulls. The chart below shows XME moving back above broke support with a rising wedge. Even though this wedge is potentially bearish, it is currently bullish because it is rising. Key support is set at 42. XSD is on a tear with a 10% advance the last three weeks.
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
Key Reports and Events:
Wed - Dec 12 - 07:00 - MBA Mortgage Index
Wed - Dec 12 - 10:30 - Oil Inventories
Wed - Dec 12 - 12:30 - FOMC Rate Decision
Thu - Dec 13 - 08:30 - Jobless Claims
Thu - Dec 13 - 08:30 - Retail Sales
Thu - Dec 13 - 08:30 – Producer Price Index (PPI)
Fri - Dec 14 - 08:30 – Consumer Price Index (CPI)
Fri - Dec 14 - 09:15 - Industrial Production/Capacity Utilization
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.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
Learn More
