May 2, 2013
Mish's Daily
By Mish Schneider
Good evening readers! You may address me tonight as Ms. Prudence as the “Sell in May, then walk away” believers who read last night’s daily hopefully heeded the warning of not banking too much on such hackneyed phrases. Naive or delusional are the folks who think that the market can be navigated by simply following such clichés. Oh, and have I mentioned “The Trend is Your Friend” lately? Indeed, as the S&P 500 once again, tops the charts with a new multi-year high close!
S&P 500 (SPY) 162 here we come? Of course unemployment numbers due first thing Friday will have some influence. Otherwise, 158.00 the new support to hold
Russell 2000 (IWM) Unconfirmed phase change back to bullish as now 92.50 has to remain intact with a weekly close over 94.00, a really strong way to end the week.
Dow (DIA) Believe it or not, the April 15th high I have been mentioning a lot, has yet to be convincingly cleared on a closing basis. That’s huge for any precursors into the following week-can it or can it not?
NASDAQ 100 (QQQ) I started this week focused on this index as the one. Now, am ending the week making the bold statement that this index is just getting going
ETFs:
GLD Unless this makes a substantial gap lower, the return and hold over the 200 weekly moving average is positive
XLF (Financials) Inside day making the way the range breaks probably pretty decisive for looking ahead
IBB (Biotechnology) Still resting with 175 an area to get through
SMH (Semiconductors) “Oh sweet mystery of life at last I found you!”
XRT (Retail) Good comeback off of support. Consumer confidence high. Credit card companies prospering-new highs again possible
IYT (Transportation) 110 is key
IYR (Real Estate) Nearly an inside day, but after doing its job helping get the market to these levels, for end of week, not expecting this to be the leader.
USO (US Oil Fund) ECB rate announcement helped pop this right back to the overhead 200 DMA.
OIH (Oil Services) Another push and this should continue moving up.
XLE (Energy) 78.30 will break the pattern of lower highs since its peak
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day. One day the bond bubble will happen.
XOP (Oil and Gas Exploration) Looks better away from the 200 DMA but needs a little more time
XHB (Homebuilders) 30.83 has to clear to negate the slingshot, but held support alright.
UUP (Dollar Bull) 22.58 the weekly number to clear for a major shift
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