June 25, 2014
Mish's Daily
By Mish Schneider
Meaning of Life-Monty Python
“So one thing you should know if you are a consistent reader, EVERYTHING needs confirmation with a second day. Tuesday action no exception. Both IWM and QQQs closed pretty much right on the fast moving averages. Recoverable if they can hold here and turn back up….Let’s look for Wednesday confirmation or no confirmation. The Indices, Semiconductors should be enough to look at.”
And those thoughts my friends, are the very reason I write this report daily-to keep you calm, clear and in full understanding of the rules of engagement or disengagement as it were!
When you stop and reflect on all the layers that go into the market, the one that fascinates me the most is the collective consciousness or “herd” mentality. Why did Tuesday happen? Geopolitical jitters? Kind of legitimate. Or is that the stuff 2014 is made of? Just when you dance the new high dance, time to look around and see if you are dancing with yourself!
Market managed to gain back ½ of Tuesday’s losses with again some incredible winners such as Schlumberger, Google, Best Buy, Gannett Company and Sprouts, one our portfolio has been holding for 2 weeks now.
NASDAQ looks ready to put on its tap shoes again and the Russells, if holds 177.50, can dosey doe over 118.35. Otherwise, the rodeo stars are the stellar stock pickers who ride the one day wonders!
S&P 500 (SPY) Back over 195and now, really has to hold today’s low to make up what it lost on Tuesday
Russell 2000 (IWM) 117.50 we will call pivotal with over 118 better
Dow (DIA) 168 pivotal here
Nasdaq (QQQ) No doubt best looking of the bunch if holds today’s low and vote for most likely to get to new highs
XLF (Financials) Trying, we will give it that
KRE (Regional Banks) Actually, not a bad day for this one-with another push, good for tomorrow
SMH (Semiconductors) Can’t keep a good semi down
IBB (Biotechnology) Over today’s highs should be good again
XRT (Retail) Actually, since this never cleared the 2014 highs, could just need to do more work between 84.00 and 87.00
ITB (US Home Construction) Inside day so Thursday could be the best follow through for this
GLD In a holding pattern
USO (US Oil Fund) Since the runaway gap, been consolidating.
OIH (Oil Services) “Ugly looking but not dead yet” Let’s call it resurrection!
XLE (Energy) Another little resurrected sector
TAN (Guggenheim Solar Energy) Of course the spawn of XLE and SMH woke up as well
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT a gap higher which means above 112.66 good
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