Swing Traders Need Patience As Market in a Trading Range

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Next Federal Open Market Committee (FOMC) meeting on Sept. 20-21. In 1961, The FED did "Operation Twist," which means they sold short-term securities while buying longer-term debt. To repeat from last night’s blog, the goal was to flatten out the yield curve or "twist" it so that companies would have little choice but to begin investing the capital they were hoarding. Plus, they raised short-term rates as a means of attracting foreign investment to the United States. Seems a viable option FED could do as a short term solution and given the other choices, perhaps the best option.

SPY In the last 2 weeks, there have been 3 accumulation days and 2 distribution days in volume and clearly today's volume did nothing to tip that scale one way or another. We must not forget the phase is still bearish with no indications of that turning just yet.

DIA  Has to get through R1

QQQ Low volume after an accumulation day yesterday. 54.00 now pivotal area to stay above with the 50 weekly moving average resistance as well as the 50 DMA.

IWM A trading range has been established between 64.50 and 74.00. The really patient could wait for the range to break before establishing any longer term position. For now, anticipation is for a test of the top of the range.

ETFs:

GLD Recommended to my subs, a buy over 177 with profit taking at ½ ATR and a choice of holding small position overnight or taking the total profit if closed under the gap fill. Overall, still in a wide trading range 170-186.

SLV Provided it holds 39.30 area, could see a test of 40.60 next resistance with bullish trend intact.

SMH**There is a parallel channel (illustrated on the inserted chart), which shows that today’s high tested the top. Ideally would like to see a gap higher above it with next target 30.65 then 32.00. Otherwise, needs to hold 29.10 or could see some selling since overall formation merely shows a trading range and not a confirmed bottom.

IYT Crossed above 79.45 and rallied to the adaptive moving average. Under today's low, vulnerable.

XRT Good follow through and near the 50 weekly moving average resistance.

XLE Had good volume today although it could not cross R1. Like so many others, range bound albeit wide.

XLF DOJI 12.45. Now pivotal.

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