Programming Note: I will be taking time off between Christmas Eve and New Years. The next commentary for Art's Charts will be on Thursday, January 2nd. I wish everyone a very Merry Christmas season and a Happy New Year!
Stocks finished the week on a strong note as several major index ETFs hit new highs on Friday. For the week, the Russell 2000 ETF (IWM) led the way with a 3.38% gain. All sectors were up with industrials, tech, materials and finance leading the way. Homebuilders got back into their groove as the Home Construction SPDR (ITB) surged over 5% and broke above the early December high. While homebuilders led the consumer discretionary sector, retailers lagged as the Retail SPDR (XRT) gained just 2.16%. It looks like deep discounting is weighing on this key group. Elsewhere, gold fell off a cliff again as the world moved one step closer to normalization. It is a relatively light week for economic reports. Homebuilders will grab the spotlight again on Tuesday with New Home Sales and the MBA Mortgage Index. The market will close early on Christmas eve (13:00) and be closed Christmas day.
**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 - Dec 23 - 08:30 - Personal Income&Spending
Mon - Dec 23 - 09:55 - Michigan Sentiment
Tue - Dec 24 - 07:00 - MBA Mortgage Index
Tue - Dec 24 - 08:30 - Durable Orders
Tue - Dec 24 - 10:00 - New Home Sales
Thu - Dec 26 - 08:30 - Initial Claims
Fri - Dec 27 - 10:30 - Natural Gas Inventories
Fri - Dec 27 - 11:00 - Crude Inventories
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.
