January 23, 2013
Mish's Daily
By Mish Schneider
I am writing this while AAPL digests the miss on earnings and NFLX digests the beat. So, what could that do to the market? A couple of caveats as we continue overbought on the near term Relative Strength Indicators-first, the Russell 2000 made a new high and closed on the lows. Second, NASDAQ at a very critical area here-with a gap above the 2013 high, making a new one-a failure could signal some sellers. And more importantly, make any new investors even more reticent than they have already been.
S&P 500 (SPY) Like so many instruments, this has a super high 2-day RSI. But, no type of blow off rally feel since volume is light.
Russell 2000 (IWM) Closed down and could be a first fair warning sign
Dow (DIA) Breakaway gap if holds but with high 2-day RSIs
NASDAQ 100 (QQQ) 67.34 was 2013 high which it cleared, but now becomes even more important as a pivotal point.
ETFs:
GLD I still maintain the best scenario overall is for GLD to retreat. But, until rates climb and any tensions around the world subside, the longs still ok with the 5O DMA the obvious resistance to clear.
XLF (Financials) Watch here since doji day-and new 2013 high by one tick.
IBB (Biotechnology) Getting heavy
SMH (Semiconductors) Part of me thinks this should have done better with the CREE report and the other part of me thinks that it's just pausing before pushing on to 36.00
XRT (Retail) Overbought and another sector that made a new high for 2013 then retreated
IYT (Transportation) Even if this sells off from here, I still am quite satisfied with the profits we took
IYR (Real Estate) Overall looks great but if market sells off some, so will this
USO (US Oil Fund) Resistance at 35.00 and closed right there. If good, should clear. If not, still longer term trend is negative
OIH (Oil Services) Approaching overbought
XLE (Energy) 77.35 the 2012 high. Inside day.
DVY (Select Dividend Index) Inside day.
XOP (Oil and Gas Exploration) Inside day
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