Can Holistic Therapy Put the Market on the Mend?

August 2, 2016

Mish's Daily

By Mish Schneider

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Yesterday we wondered if our Rallysaurus was safe. The X-Ray technicians determined that “our specimen has healthy bones. Nevertheless, the soft tissues made up of blood, skin, fat and muscles look like they could be fading.”

Although the day’s activity today may not have put the Rallysaurus at the threat of extinction, it did leave him feeling forlorn and standing pigeon toed.

How does one renew soft tissue on an ailing specimen? One way is through Advanced Soft Tissue Release. Essentially, using over 125 maneuvers, ASTR gently and quickly increases the range of motion by releasing trigger points.

Which maneuvers might the market makers employ to release the market’s trigger points?

Two sectors, both members of the Modern Family, left us encouraged that the right amount of therapy can revive the beast.

Sister Semiconductors (SMH) and her not one but two runaway gaps ultimately held both gaps. Her back pain would have increased exponentially if she traded down to 62.33-the gap high is 62.32. Instead, after a productive sell off and a good ASTR session, SMH hung on. Wednesday we should know more if her therapy also promoted healing.

Big Brother Biotechnology (IBB) demonstrated that speculators could become shaken, but not necessarily stirred. A certified ASTR practitioner learns how to treat muscle spasms. After testing key support above 288, IBB held and then rallied onto the close. Considering the success of Big Brother’s massage therapy, that puts 310 as a reasonable target.

Who needs a lot more therapy?

In worst shape is our Prodigal Son Regional Bank (KRE). Now in a confirmed Bearish Phase, KRE’s diagnosis is sacroiliac joint pain. In order for him to benefit from ASTR treatment, our healer needs to use tools that can break up the scar tissue. For KRE, it’s working if it can rally back above 40.00.

Next in the waiting room, Transportation (IYT). In an unconfirmed Distribution Phase, IYT suffers from dislocation and instability. To counteract its current unsteadiness, IYT has to move back and close above 138.50.

Gramps has had issues with arthritis in the past. In inclement weather, he experiences stiffness and swelling. The Russell 2000 (IWM) closed beneath the fast moving average for the first time since June 29^th. Although it might take a few treatments to get him back up to speed, just how many more times IWM must visit the therapist will depend on whether or not he can hold above 118.50.

Advanced Soft Tissue Release uses a holistic approach looking at a patient’s lifestyle, diet and mindset. In order for our Rallysaurus to look less skeletal, a holistic approach means observing the price action of the stronger family members and watching for the Central Banks next interest rate moves.

Hopefully, the market’s condition and symptoms are not beyond the scope of the ASTR practitioner’s skillsets. Then, we could be looking at surgery.

S&P 500 (SPY) Closed under the 10 DMA which usually means (like in the case of DIA which did so last week and had 6 days trading beneath) more correction in store.

Russell 2000 (IWM) 118.83 support held

Dow (DIA) How to go from overbought to oversold in 6 days. Look for this to lead the indices if correction over

Nasdaq (QQQ) This on the other hand, held the 10 DMA. 114.30 area is your key

XLF (Financials) Although it traded lower, has room and doesn’t look too bad

KRE (Regional Banks) Best news-it held the 100 DMA

SMH (Semiconductors) First close under the 10 DMA since 7/06.

XRT (Retail) Big volume sell off. Granny in the family too. 43.30 big support to hold

IYR (Real Estate) A reversal or at the very least a correction maybe to 82.00

GLD (Gold Trust) 132.50 in focus

SLV (Silver) There you go-looks strong with 19.00 big support

GDX (Gold Miners) A breakaway gap-small but if doesn’t fill 31.05 good

USO (US Oil Fund) I’m going to take a guess here-tomorrow has an inside day or at least trades inside the range of this week-no new high or low