Stocks meandered on Tuesday with the major index ETFs finishing mixed on the day. The Nasdaq 100 ETF (QQQ) advanced .56% on the heels of Apple, while the Russell 2000 ETF (IWM) fell .13% on the day. Treasuries were the big movers as a positive retail sales report prompted another bout of selling pressure. This pushed the 10-year Treasury Yield ($TNX) to 2.71% and extended the downtrend in the 20+ Year T-Bond ETF (TLT). Rising rates hit the Home Construction iShares (ITB) and the REIT iShares (IYR) as both fell over 1.5%. ITB continues to underperform the broader market as it tests neckline support. Gold got knocked back and its breakout will be tested in the next day or two.
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Key Reports and Events (all times Eastern):
Wed - Aug 14 - 07:00 - MBA Mortgage Index
Wed - Aug 14 - 08:30 - Producer Price Index (PPI)
Wed - Aug 14 - 10:30 - Crude Oil Inventories
Thu - Aug 15 - 08:30 - Initial Jobless Claims
Thu - Aug 15 - 08:30 - Consumer Price Index (CPI)
Thu - Aug 15 - 08:30 - Empire State Manufacturing Index
Thu - Aug 15 - 09:15 - Industrial Production
Thu - Aug 15 - 10:00 - Philadelphia Fed
Thu - Aug 15 - 10:00 - NAHB Housing Market Index
Thu - Aug 15 - 10:30 - Natural Gas Inventories
Fri - Aug 16 - 08:30 - Housing Starts/Building Permits
Fri - Aug 16 - 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.
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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