This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Sectors React to New Fed Chair Yellen

Stocks in this article: XLB XLE XLI XLP XLY

NEW YORK (TheStreet) -- Traders and investors liked the overall tone of the first Congressional testimony by the new Federal Reserve Chair Janet Yellen. The doves wanted assurances that the policies in place would continue. That message was heard loud and clear.

On Tuesday I wrote "Watch Out! These 8 ETFs Have Negative Weekly Chart Profiles," where I presented key levels to focus on in reaction to Yellen's testimony. Here's a brief summary:

Materials Select Sector SPDR (XLB) ($45.44) closed above its five-week modified moving average at $44.73, as commodity speculation may return on Yellen's low interest rate pledge.

Industrial Select Sector SPDR (XLI)($50.71) did not close above my semiannual pivot at $50.88, after trading as high as $50.91 in reaction to Yellen. This implies industrials may lag with a status quo Fed.

Consumer Discretionary Select Sector SPDR (XLY) ($64.52) needed to close above my semiannual pivot at $65.13 to be an indication that consumer discretionary spending would be helped by a Yellen Fed.

Consumer Staples Select Sector SPDR (XLP) ($41.57) closed above its 200-day simple moving average at $41.34 instead of closing below my annual pivot at $40.69, which implies some improved spending for consumer staples.

Energy Select Sector SPDR (XLE) ($84.74) which is above its 200-day SMA at $83.52. A close Friday below its five-week MMA at $85.28 will continue to reflect continued weak demand for energy and oil-based products.

The mixed bag of price actions among these ETFs suggests that Yellen's testimony was not game-changing.

The major averages posted significant gains on Tuesday. As a result, it becomes more likely that the five major averages will avoid confirming cycle highs at least for this week. However, the question is: will new all-time or multiyear highs be set over the weeks ahead?

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs