Stocks extended their gains ahead of today's Fed meeting. The Russell 2000 ETF (IWM) led the charge with a 1.5% advance. Techs were also strong as the Technology SPDR (XLK) led the sectors with a 1.3% gain. Strength in the Semiconductor SPDR (XSD), Internet ETF (FDN) and Software iShares (IGV) powered a strong tech group. It is hard to argue with leadership from small-caps and techs. The intraday breadth indicators remain bullish overall. The Nasdaq AD Line recovered after its support break with a strong surge the last few days. The Nasdaq AD Volume Line and NYSE AD Line moved to new highs, while the NYSE AD Volume Line bounced off its support zone. NYSE High-Low Percent moved back above 5% and Nasdaq High-Low Percent is above 4%.
**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):
Wed - Mar 19 - 07:00 - MBA Mortgage Index
Wed - Mar 19 - 10:30 - Crude Inventories
Wed - Mar 19 - 14:00 - FOMC Rate Decision
Thu - Mar 20 - 08:30 - Initial Claims
Thu - Mar 20 - 08:30 - Continuing Claims
Thu - Mar 20 - 10:00 - Existing Home Sales
Thu - Mar 20 - 10:00 - Philadelphia Fed
Thu - Mar 20 - 10:00 - Leading Indicators
Thu - Mar 20 - 10:30 - Natural Gas Inventories
Fri - Mar 21 - 09:00 - Happy Friday!
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.
