Stocks moved higher on positive economic news, and bonds moved lower. The ISM Manufacturing Index rose to 55.40, which is a two year high. Initial jobless claims fell to 326,000, which is the lowest level since January 2008. Stocks took the news well with the major index ETFs gaining over 1%. All sectors were up with XLY, XLK, XLI and XLF gaining over 1% as well. There were, however, some weak spots in the market as the Home Construction iShares (ITB) and Real Estate iShares (IYR) edged lower. In addition, solar stocks, gold miners and silver miners were hit with selling pressure. Overall, however, it was another good day for the stock market as the major index ETFs hit fresh 52-week highs. Bonds sold off in the face of positive economic news with the 20+ Year T-Bond ETF (TLT) hitting a 52-week low.
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
**************************************************************************
Key Reports and Events (all times Eastern):
Fri - Aug 02 - 08:30 - Employment Report
Fri - Aug 02 - 08:30 - Personal Income & Spending
Fri - Aug 02 - 10:00 - Factory Orders
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
