Stocks started the day under selling pressure, but firmed around midday and bounced in the afternoon. Even though the bounce was not that strong, it was positive to see stocks recover after the initial decline. Stock futures are sharply higher this morning and it looks like the situation in Ukraine could be stabilizing as the realities become apparent. Russia will not give up Crimea and there is not much the US, Europe or Ukraine can do about it. The situation should remain stable as long as Russia does not make a grab for other parts of Ukraine and Ukraine does not go to war with Russia over Crimea. In short, it is pretty much in everyone's best interest to accept the realities of the current situation. Returning to stocks, the net declines were muted, but broad. All sectors declined with the Technology SPDR (XLK) and Consumer Discretionary SPDR (XLY) leading. Both fell around 1%. The Gold Miners ETF (GDX) and Silver Miners ETF (SIL) were up as precious metals gained. The REIT iShares (IYR) bucked the selling pressure with a small gain, as did the Telecom iShares (IYZ).
**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 05 - 07:00 - MBA Mortgage Index
Wed - Mar 05 - 08:15 - ADP Employment Report
Wed - Mar 05 - 10:00 - ISM Services
Wed - Mar 05 - 10:30 - Crude Oil Inventories
Wed - Mar 05 - 14:00 - Fed's Beige Book
Thu - Mar 06 - 07:30 - Challenger Job Report
Thu - Mar 06 - 08:30 - Initial Jobless Claims
Thu - Mar 06 - 08:30 - Continuing Claims
Thu - Mar 06 - 10:00 - Factory Orders
Thu - Mar 06 - 10:30 - Natural Gas Inventories
Fri - Mar 07 - 08:30 - Employment
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.
