This morning, the markets are sending us traders mixed messages. There is some early strength in the semiconductors sector. The popular Van Eck Vectors Semiconductor ETF (NASDAQ:SMH) is trading higher by $1.80 to $116.78 a share. This is a very important industry group for all traders to follow as it will often lead markets and indicate strength in technology. Then we are looking at a weak Russell 2000 Index to start the session. The iShares Russell 2000 ETF (NYSEARCA:IWM) is trading lower by 0.84 to $111.72 a share. Remember, the Russell 2000 represents small business in the United States. Generally, when these two important ETF’s trade higher at the same time it usually indicates broad strength. When they are trading mixed we must all be a little careful.
At this time, the leading financial stocks are weak at the start of the trading session. This industry group is extremely important to follow. Should the financial stocks firm up later in the session then it could change the morning landscape. Everyone must remember that the financial stocks are also a leading industry group. This group can be easily followed by watching JPMorgan Chase & Co (NYSE:JPM). I will usually use JPM stock as a financial ETF. Today, JPM is trading lower by $1.60 to $89.57 a share.
All traders must monitor these important stocks sectors everyday. These key industry groups will give traders very good clue as to where the intra-day money is flowing and the overall strength of the market.