Schaeffer's Trading Floor Blog
Stocks quoted in this article:

Sharlee says - " The Transports have been leading the Industrials lower for the recent past. A decisive break of 3575 by the DJTA will not be real bullish for the blue chips."

My response - On Friday we touched on the weakness in the transports as trucking stocks were a drag on the index. I like to look at the iShares DJ Transportation Average (IYT) and note the weekly chart...


Created with SuperCharts by Omega Research

Here you can see the recent downtrend, as well as the longer-term trend. I see support just below 63 (the "equivalent" level on the Dow Jones Transportation Average would be near 3450) as the major level to watch on the intermediate-term...


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Stocks quoted in this article:

Tim says - "Yawnnnnnn. What a boring day! The kind of days where the vulture says "Patience my a__, I'm going to go kill something" or where a trader might "force" a trade just to do something. "

My response - I agree! While there are a few stocks to watch as they continue to slide lower (SBUX, IBM), the action of the major indices is decidedly dull.

And Tim brings up a great point about forcing a trade, which can be a very dangerous situation. As a trader, you may feel that you need to do "something" in order to feel you are not wasting time. In other words, we tend to equate action with productivity.

The problem is that when the market does start to liven up, many times you find yourself holding mediocre stocks and have exposure that may not be suited to what is now happening.

As a trader, your primary goal is not simply to make trades - it is to make money. If your indicators aren't lining up, the best move may be sit on your hands and wait for a more opportune situation. This can be a good time to catch up on reading or to peruse stock scans to find stocks that you aren't familiar with.

When I was actively trading, I always found it helpful to have a few side projects under way. When the market wasn't "showing me anything" I would divert my attention to those. Not only did this help to keep me from forcing a trade, but I found that I was more energized when I came back to the market.


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Stocks quoted in this article:

Speaking of the HHH, I thought it would be good to update the chart we discussed on Thursday...


Created with SuperCharts by Omega Research

Today's weakness has the HHH retreating from the resistance zone and the 50-day moving average. The recent low was just below 53 so that is something to watch...

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Stocks quoted in this article:

The indices continue to mull around breakeven so I thought I would check on in the top and bottom performing Exchange Traded Funds (ETFs)...

Top Performing Sector Exchange Traded Funds:

  • iShares DJ US Real Estate (IYR) = +1.34 percent
  • Retail HOLDRS (RTH) = +1.11 percent
  • Utilities HOLDRS (UTH) = +1.08 percent
  • Utilities Select Sector SPDR (XLU) = +0.88 percent
  • iShares DJ US Utilities (IDU) = +0.58 percent
  • iShares Lehman 20+ Year Treas Bond (TLT) = +0.57 percent
  • iShares Nasdaq Biotechnology (IBB) = +0.55 percent
  • Consumer Staples Select SPDR (XLP) = +0.39 percent

Bottom Performing Sector Exchange Traded Funds:

  • iShares DJ US Basic Materials (IYM) = -0.39 percent
  • Consumer Discretionary SPDR (XLY) = -0.39 percent
  • Technology Select Sector SPDR (XLK) = -0.41 percent
  • streetTRACKS Fortune 500 Index (FFF) = -0.44 percent
  • Semiconductor HOLDRS (SMH) = -0.46 percent
  • iShares GS Semiconductor (IGW) = -0.61 percent
  • iShares GS Networking (IGN) = -0.64 percent
  • Internet HOLDRS (HHH) = -1.24 percent

As you can see, most groups are echoing the action of the major indices as only a few groups are showing a move of more than one percent. On the upside we see that real estate, retail and utilities are leading my ETF list. Internet stocks, however, are not faring as well as the group earns the distinction of the being the only ETF from my list to drop more than one percent.

Note: If you are not familiar with ETFs, make sure you read the Education and FAQ sections in our ETF center.

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Index Check

by 4/11/2005 12:40 PM
Stocks quoted in this article:

A choppy session so far....

The broad market indices have bounced off their lows as a spike in NYSE net ticks pushes the SPX and DIA back above breakeven...biotech is leading the day, with bonds the next best performing group. Oil is still down but oil stocks are holding flat...gold stocks have given up their morning gains...


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