Stocks finished the day mixed as the market awaits the employment report. The Dow Industrials SPDR (DIA) edged lower, but the S&P MidCap 400 SPDR (MDY) edged higher. The sectors were mostly lower with the Basic Materials SPDR (XLB) falling around 1%. Declines in the Gold Miners ETF (GDX) and the Silver Miners ETF (SIL) weighed on the materials sector. The Technology SPDR (XLK) and the Utilities SPDR (XLU) edged higher. Techs were helped with a big gain in the Networking iShares (IGN). Several commodities made big moves the last two days. Note that the Base Metals ETF (DBB) broke above channel resistance and the Commodity Index Fund (DBC) and broke above its early January high.
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Key Reports and Events:
Fri - Feb 01 - 08:30 – Employment Report
Fri - Feb 01 - 09:55 - Michigan Sentiment
Fri - Feb 01 - 10:00 - ISM Index
Fri - Feb 01 - 10:00 - Construction Spending
Fri - Feb 01 - 14:00 - Auto/Sales
Fri – Mar 01 - 23:59 – Sequester Takes Effect
Wed – Mar 27 - 23:59 – Government Shut Down Deadline
Wed – May 15 - 23:59 – New 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.
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.
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