Archives: Mish's Daily

How to Properly Manage Risk in A choppy Market Environment

Mish Schneider | August 3, 2021

Written by Forrest Crist-Ruiz For the past week, the major indices have been very choppy. Without clear direction in the indices, volatility has increased making price swings faster and thus tougher to time. However, times like this prove how important risk management is, and if done correctly can help preserve trader's capital. With that said, let's go over a simple example of how to manage risk based on a set amount of trading capital. First,

While the Market Trades Sideways, This Sector Pushes to New Highs

Mish Schneider | August 2, 2021

Written by Forrest Crist-Ruiz The small-cap Russell 2000 index (IWM) cannot make up its mind. For the past three trading days, IWM has not been able to clear a pivotal resistance area created from the 50-Day moving average at $225. Other key sectors including Transportation (IYT) and Retail (XRT) have also been under pressure, and like IWM are struggling to hold their current price levels. With that said, there is one sector that could be

Pivotal Price Levels the Market Must Hold or Clear Next Week

Mish Schneider | August 1, 2021

Written by Forrest Crist-Ruiz The past week's earnings have set the market stage with large tech companies such as Apple, Google, and Microsoft beating earnings estimates. With that said, prices look to be waning not only in the large tech companies, but in the overall market. This could be related to other factors in the market that have taken the spotlight from increasing inflation, to the rise in Covid-19 worries as the delta variant spreads.

Symbols to Watch as the Stay-at-Home Trend Continues

Mish Schneider | July 28, 2021

Written by Forrest Crist-Ruiz Google recently joined the list of growing companies to postpone their back-to-work plans as the Covid-19 delta variant continues to spread. Along with Google, Apple has previously extended working from home for the same reason. With large companies postponing back to office mandates many other companies are giving their employees the option to continue to work from home. With that said, we are keeping an eye on companies related to the

What are the Key Support Levels in the Major Indices?

Mish Schneider | July 27, 2021

Written by Forrest Crist-Ruiz As the Covid-19 Delta variant spreads across the United States, the CDC continues to update its guidelines to mitigate further spread. Although we don’t know if there will be any nationwide lockdowns or reduced travel restrictions in the immediate future, it has become abundantly clear that Covid issues are not even close to over just yet. The global pandemic has been a leading cause of stress on the market and could

Is the Market Gaining or Losing Momentum?

Mish Schneider | July 26, 2021

Written by Forrest Crist-Ruiz Three of the four major indices including the S&P 500 (SPY), Nasdaq 100 (QQQ), and the Dow Jones (DIA) inched to new highs, while the Russell 2000 (IWM) struggles in its current price range. It is important for IWM to keep pace with the other indices, for it shows a large selection of small-cap companies which tend to better reflect the overall market picture. This is especially true throughout the pandemic

Why Everyone Should be Watching IWM and IYT Through Next Week

Mish Schneider | July 25, 2021

Written by Forrest Crist-Ruiz The week started with a large rally and is now ending with the Nasdaq 100 (QQQ) and the S&P 500 (SPY) at all-time highs. Though the Dow Jones (DIA) is not far behind, the small-cap index Russell 2000 (IWM) struggles in the middle of its trading range. The above chart shows how IWM has been stuck within a range for the past 6 months. Unable to break to new highs IWM

What to Watch If the Crypto Space Rallies Higher

Mish Schneider | July 21, 2021

Written by Forrest Crist-Ruiz Two of the biggest by market cap cryptocurrencies including Bitcoin and Ethereum have perked up near the lows. Both have been trending down for the past month and looked as if they would test their recent lows created on 6/22. $28.8k for Bitcoin and $1700 for Ethereum. However, while Wednesday’s price action has stopped the bleed, will altcoins jump on the potential rally? When it comes to resistance levels, the first

How to Profit off the Markets New Reversal Pattern

Mish Schneider | July 20, 2021

Written by Forrest Crist-Ruiz Tuesday the 4 major indices confirmed a reversal pattern with a close over the prior day's high. In the above chart you can see all four indices created a new support level that needs to hold based on Monday’s low. Having said that, we can now look for similar chart patterns to base our trades from. Additionally, the recent reversal pattern will make it easy to spot weak companies allowing us

Why It Might be Time to Start Looking at Consumer Staples

Mish Schneider | July 19, 2021

Written by Forrest Crist-Ruiz With the markets’ recent decline, investors mindset could be shifting into protecting gains made throughout the year. The recent blowoff from highs has also brought in more volatility with a potentially choppier environment. Additionally, pandemic worries have increased as the covid delta variant threatens progress towards reopening countries and travel. Paired with rising inflation, many investors are searching for safer places to move money. If uncertainty remains, we could see a