Stocks rebounded on Monday with modest gains in the major index ETFs. Small-caps led the recovery as the Russell 2000 ETF (IWM) gained 1.15% on the day. Those looking for a rally excuse can point to the beginning of the month phenomenon because Monday was the second trading day of November. All sectors were up with the Energy SPDR (XLE) leading the way. This is surprising because oil fell to a four month low. The Oil & Gas Exploration & Production SPDR (XOP) surged over 3% and the Oil & Gas Equipment & Services SPDR (XES) was up 1.64%. It seems that demand for fracking equipment and services is stronger than falling prices. It is also possible that lower prices increase demand for oil and related products. The chart below shows Spot Light Crude ($WTIC) falling sharply from early September to early November. XOP continued higher and rose over 20% the last six months.
**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
**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 04 - 10:00 - Factory Orders August & September
Tue - Nov 05 - 10:00 - ISM Services Index
Wed - Nov 06 - 07:00 - MBA Mortgage Index
Wed - Nov 06 - 10:00 - Leading Economic Indicators
Wed - Nov 06 - 10:30 - Crude Oil Inventories
Thu - Nov 07 - 07:30 - Challenger Job Report
Thu - Nov 07 - 08:30 - Initial Jobless Claims
Thu - Nov 07 - 10:30 - Natural Gas Inventories
Fri - Nov 08 - 08:30 - Employment Report
Fri - Nov 08 - 08:30 - Personal Income & Spending
Fri - Nov 08 - 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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