October 16, 2013
Mish's Daily
By Mish Schneider
What are we going to do without the now familiar stresses of a government shutdown and diversion on debt ceiling policy? Turn our attention to taper vs. non-taper? Worry about Fitch rescinding their downgrade threat? Buy everything in sight? Fade the recent run up? Seriously now, what do we do? With NASDAQ and the Russell 2000s on new highs, we have to wait for the Dow to confirm the now unconfirmed bullish phase and the S&P 500 to clear 172.60 basically negating the menacing topping candle from September 19th. Then, we have to look at the sectors and groups that have room to the upside without a lot of downside risk and finally, analyze which instruments within those groups are out or underperforming, all with the same eye towards risk and reward potential. In other words, nothing too different than what we usually do to stay ahead of the curve, only now, we hope, with a great big exhale! (Until January that is!)
XLF (Financials) New 2013 highs and beyond looking a lot more likely now
SMH (Semiconductors) New high close-why not?
XRT (Retail) One group with the greatest potential now, especially of you like momentum trading and this takes out the 2013 high
IYT (Transportation) Negated the topping candle from September.
IBB (Biotechnology) Unconfirmed bullish phase. If clears 208.50 like better. If not, would stay aside
IYR (Real Estate) Cleared 65.40 and kept going-especially liking that rates dropped today. The 200 DMA is the next obstacle
XHB (Homebuilders) Gorgeous converging moving averages.
GLD Inside day
OIH (Oil Services)New 2013 highs
XLE (Energy) New 2013 highs
XOP (Oil and Gas Exploration) I have no position in the ETF, but this still excites the heck out of me to watch
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT big run back over the 50 DMA
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