March 29, 2012
Mish's Daily
By Mish Schneider
If the market is "Hungry Like a Wolf", it managed to scare the livestock off, but with how much collateral damage? Second distribution day in volume in the last 2 weeks, but no real major volume to speak of. With S&P 500 (SPY), NASDAQ 100 (QQQ) and Russell 2000 (IWM) holding the fast moving average, what could be shaping up as a top after Tuesday's intraday reversals, ends Wednesday's session in need of further confirmation. And our go to sectors since 2012 began, Financials (XLF) and the Ultrashort 20 year Bonds (TBT) closed in the green. A gap lower and prudent to sell rallies. A positive open and the wolf could retreat to its den, but that does not mean all longs will be created equal.
The Dow (DIA) Filled the gap from Monday's higher open. Generally, once a gap is filled, a hold is a positive indication, and a failure beneath the gap area reason to maintain caution on the long side.
ETFs:
GLD Held 160.50 the low of the day it gapped higher and the 10 DMA at 161.46 but remains in a weak distribution phase.
SMH (Semiconductors) Like the description of the indexes means, could be vulnerable
XRT (Retail) First day of correction from the possible reversal pattern.
IYT (Transportation) One area to look at if pushes through the fast moving average.
IYR (Real Estate) Still has to clear and close above 62.00 to look good up here.
XLE (Energy) OIH (Oil Services) Would not be surprised to see a relief rally and/or sideways action now.
TBT (Ultrashort Lehman 20+ Year Treasuries) Held 19.90 which is exactly the correction I hoped to see. Now, over 20.27 would confirm.
Every day you'll be prepared to trade with:
