Stocks extended their mixed correction with weakness for the third day running. The declines, however, remain very modest and selling pressure has been contained. The Russell 2000 ETF (IWM) lost .27% on the day, while the Nasdaq 100 ETF (QQQ) edged higher with a .09% gain. Microsoft led QQQ higher with a 1.64% gain. The tech sector continues to show relative strength as we head into yearend. The Semiconductor SPDR (XSD) edged higher with a .22% gain and the Networking iShares (IGN) surged over 1%. The CandleGlance charts below show QQQ and five associated tech ETFs. Elsewhere, gold got a nice oversold bounce and this lifted the Gold Miners ETF (GDX). Oil extended its oversold bounce and broke above its first resistance level. Treasuries were hit hard after a strong showing from the ADP Employment report. Some analysts are suggesting that the ADP numbers point to a 200,000 print for Friday's non-farm payrolls. The evidence continues to build for a strong economy and this favors tapering sometime in 2014.
**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):
Thu - Dec 05 - 07:30 - Challenger Job Report
Thu - Dec 05 - 08:30 - Initial Jobless Claims
Thu - Dec 05 - 08:30 - GDP
Thu - Dec 05 - 10:00 - Factory Orders
Thu - Dec 05 - 10:30 - Natural Gas Inventories
Fri - Dec 06 - 08:30 - Employment Report
Fri - Dec 06 - 08:30 - Personal Income & Spending
Fri - Dec 06 - 09:55 - Michigan Sentiment
Fri - Dec 13 - 23:59 - Congressional Budget 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.
