August 8, 2012
Mish's Daily
By Mish Schneider
Marketgauge has developed some really sophisticated scanning tools, not the least of which is one that categorizes over 400 instruments into phases. Often, the most telling indicator is the number of instruments that change to a more positive or negative phase. Here is how that breaks down as of this moment: 79 in an accumulation phase (up huge over last few days), 57 in a bearish phase (down over the last few days) 130 in a bullish phase (certainly up in the last few days), 13 in a distribution phase, 90 in a recovery phase and 30 in a warning phase. I not only have the information that tells me what phase an instrument is currently in, but also when it changes phases in real time. What I see right now is that many instruments are gathering momentum to go much higher should the overall market stay in its current bull phase. The ones already bullish, although the crème de la crème, are somewhat extended. Therefore, so many opportunities await this market be it catching the instruments that are accumulating to keep going up, or if the market turns, catching them from the short side as they deteriorate in phase. Good stuff!
S&P 500 (SPY) Possible shooting star candlestick formation did not confirm. But, still would exercise caution under 140. Volume remains extremely light
Russell 2000 (IWM) Last night I wrote that if this can hold 79, next time through 80.00 will be stronger. Sticking to that.
Dow (DIA) Possible shooting star candlestick formation did not confirm. Again, under 131, would exercise caution
NASDAQ 100 (QQQ) Inside day which also presents a key support level to hold or see a move down to 65.20.
ETFs:
GLD After an inside day gave no clear path other than a hold of the fast moving average.
XLF (Financials) Shooting stars on the daily chart remain unless this clears 15.06. If not could see lower prices without violating the positive phase.
IBB (Biotechnology) 132.00 key to hold as this continues its slumber
SMH (Semiconductors) Saw possible shooting stars here as well, and now followed by an inside day. Today's low becomes important
XRT (Retail) This is either a double top at 60.86 or a point to clear after some digestion occurs. And now an inside day to help see clearer.
IYT (Transportation) 91.15 still key to cross otherwise remains our designated driver.
IYR (Real Estate) 63.35 support.
OIH (Oil Services) Inside day with 39.60 the 200 DMA level to hold
XLE (Energy) Yet another inside day
TBT (Ultrashort Lehman 20+ Year Treasuries) Confirmed a phase change
For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!
Every day you'll be prepared to trade with:
