Things To Watch

Until the end of QE2, the market will continue to move higher. Although the recent price actions showing the market is stalling (potential pull back), but the trend remain to be up. The things to watch as the market make its next move to higher level are the continuation of rising commodities prices due to weakening US dollar. And for the market to mount a rally with conviction, the financial and the tech sector will need to participate.

The ETFs to watch are MOO (commodities), GLD (gold), TBF (short US Treasury), UUP (US dollar), XLF (financial), and SMH (semiconductor). The weekly price chart for XLF show it is forming a cup and handle price pattern, while the weekly price chart for the semiconductor sector ETF, SMH show it is working on its weekly bull flag move.


GLD (gold):




MOO (commodities):




UUP (US dollar):




TBF (20+ yrs US Treas. Short):




XLF (financial):




SMH (semiconductor):