June 14, 2015
Mish's Daily
By Mish Schneider
1. For Prodigal Son Regional Bank’s gallant run to new 2015 highs, there are endless beaches to soak in and relax at-now, now KRE-we’re not talking about those nude beaches!
2. For Big Brother Biotechnology’s kickback attitude, there are limitless amounts of photo opps, particularly ancient structures.
3. For Transportation and Trannies general need for reassurance-the locals are friendly and quick to offer directions or recommend a great restaurant.
4. For Granddad Russell 2000s and his requirement to remain Patriarch this year, Greece has 3000 years of existence for him to explore and learn from. After all, IWM knowing that history repeats itself, does not want to make the same mistakes!
5. For Grandma Retail, since money and budgets are a big concern, Greece is actually one of the most affordable countries to visit today.
6. For Semiconductors, who must remain in good shape for the rest of the year, Greece is off the charts for high quality and overall healthiness of the food.
Last week, Greece and the “You must pay the debt, but I can’t pay the debt” melodrama overshadowed the market. Naturally, that left the Family of the top, key index and 5 critical sectors somewhat confused.
Looking at GREK, the Global X FTSE Greece ETF, like what the country advertises as a top reason to visit there, it looks relatively crime-free making it a safe choice. The chart shows basing action with two clean bottoms in March and April. It is holding the 50 Daily Moving Average.
As this week begins, along with watching how Granddad IWM and Grandma XRT behave-after all, we still need them most of all-it seems to makes sense to also watch GREK.
A move back through 12.00 could be the boost the Family requires to hang in there and take that Greek getaway.
Under 11.00 and Grandma Retail could freak out, cutting off the money supply and forcing the rest of the Family to have a staycation instead!
S&P 500 (SPY) Unconfirmed return to a warning phase. Oh that Greek dance around the 50 DMA!
Russell 2000 (IWM) 127 is the top of the range. Support now 124.43 the 50 DMA
Dow (DIA) Unconfirmed return to a warning phase. In a trading Range is smartest thing to write
Nasdaq (QQQ) The 50 DMA pivotal now or 108.67.
XLF (Financials) Possible reversal top off the new highs-hard to believe so will look to see if that confirms on Monday
KRE (Regional Banks) 2 Inside days near the highs. That is a good sign that it’s merely digesting
SMH (Semiconductors) Has to clear 58.00 and hold 56.80
IYT (Transportation) Couldn’t close over the key weekly moving average. The good news is it didn’t stray that far from it
IBB (Biotechnology) Sold off, but not in a damaging way
XRT (Retail) Hung on to a declining slope of the 50 DMA so not much changes for this week-has to close over 100 or under 96.00 to be a game changer
IYR (Real Estate) Death Cross but not a short signal necessarily since price if far from the moving averages
ITB (US Home Construction) Holding up ok
GLD (Gold Trust) A close over 114 will get us interested
USO (US Oil Fund) 20.20 a good pivotal point to watch as support or resistance as this week begins
XLE (Energy) Does look heavy
TAN (Guggenheim Solar Energy) Teeny trading range and an inside day Friday.
TLT (iShares 20+ Year Treasuries) After a valiant attempt at a reversal, it failed to materialize
EEM (Emerging Markets) Possible reversal in the works-worth watching for sure
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