Stocks pulled back for a day and then rebounded on Thursday with small-caps leading the way. All sectors were up, but the gains in three of the four offensive sectors were relatively muted. XLI led with a .94% gain, while XLK gained just .33%, XLY advanced .54% and XLF added .28%. There were some pockets of strength in the industry group ETFs with the Home Construction iShares (ITB) gaining 1.01%, the Networking iShares (IGN) surging 1.74%, the Internet ETF (FDN) hitting a new high and the Biotech SPDR (XBI) adding 2.66%. The tech sector remains strong and this is positive for the market overall.
**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):
Fri - Feb 21 - 10:00 - Existing Home Sales
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.
