March 15, 2012
Mish's Daily
By Mish Schneider
Volume, a topic I have not written about lately, was good. Not off the charts, but the 3rd accumulation this week in S&P 500 (SPY), NASDAQ 100 (QQQ) and now, in our little sobering friend Russell 2000 (IWM), which also managed a new high close since 7/22/11. What the volume suggests, since this has not been a classic high volume rally by any means, is that real buyers are coming back into the market making it far more fun for us active traders who thrive off of liquidity.
NASDAQ (QQQ) Where will this rally stop? Instead of concerning yourself with that, instead go with the flow and let the market tell you when-past issues have explained factors that go into assessing a top. Of course, astute traders will be on the lookout for that. For now, we continue to enjoy the ride.
S&P 500 (SPY) 142-144 seems like a reasonable target.
The Dow (DIA) 134-135 reasonable target
Russell 2000 (IWM) 83.31 last swing high and getting closer.
ETFs:
GLD We have made money both long and short this year. A confirmed and weak distribution phase exits. 158 a support area and next place to watch for short and back over the 200 DMA impressive
XLF (Financials) Will this give traders a correction to buy or is it more like everyone waiting for the correction so the rally continues. Of course now, risk to enter is not manageable
IBB (Biotechnology) Quiet firming over Wednesday high with room on upside
SMH (Semiconductors) 35.49 recent high-if rallies above, don't fight it
IYT (Transportation) Long and strong with 96.13 last high in early February in its midst and beyond
IYR (Real Estate) Could see move to 63.00-64.00 next.
XRT (Retail) I have subscribers who have been long this for a swing trade since 54.70.
USO (United States Oil Fund) Have not seen an edge long or short for a couple of weeks as this holds the 50 DMA but trades under the fast moving average
TBT (Ultrashort Lehman 20+ Year Treasuries) Another one we relentlessly watched for the bottom and held onto after initially making our brokerage firm happy with commissions in and out
Every day you'll be prepared to trade with:
