By Markus Heitkoetter
Stocks rallied to new all-time highs (again).
The S&P ended the day 6 points higher with a new all-time high close of 2069.41. The DOW managed a new all-time high close of 17817.890 with just an 8 point .04% gain.
If you’re a day trader, today felt more like a slow holiday trading session instead of just the first day of a holiday week! The E-Mini S&P (ES) was stuck in a 5 point range during the U.S trading session. Compared to the current “average daily range” of 14.5 points, today’s range was the smallest trading range for ES since August.
As we approach the Thanksgiving holiday and “Black Friday” shopping deals, many investors begin to pay close attention to retail companies. Retail stocks can be tracked by monitoring the ETF Retail HOLDRS (RTH). As you might have guessed, retail has been doing well with the recent broad market rally. BUT it’s a bit late to jump aboard this train!
A Power Crossover Method Buy Signal was identified on 22nd Oct 2014 and RTH has been moving higher ever since. It would be prudent to wait for a retracement, or better yet a change of direction, instead of counting on the rally to continue without a pullback.