January 9, 2014
Mish's Daily
By Mish Schneider
I began this week predicting Monday would set the tone for the rest of the week. Well, if digestion, choppiness and diversion were the tone, thenyes-but directionally in the indices not so much. I also predicted that Friday after the jobs report (how much it exceeds or recedes from 7%) could create a U-turn.
Here’s the rub-will the underachievers like Oil, Real Estate, Metals turn up? Or, will the indices holding on for dear life along with the shining stars-Biotechnology, Transportation and Financials turn down?
Moreover, will none of the above transpire leaving us drowning in indecision?
S&P 500 (SPY) 184 is the area to clear since the gap last week. 182 the support.
Russell 2000 (IWM) 114 is really key with another try over 115 better
Dow (DIA) Still holding the runaway gap from 12/26. Over 163.26 continues to do so-over 165 looks better
Nasdaq (QQQ) Sloppy day and weaker close than the others-AAPL partly the culprit
XLF (Financials) Another new high-fins, don’t fail us now!
SMH (Semiconductors) Not a bright spot with yet another sloppy chart
IYT (Transportation) New highs-interesting
IBB (Biotechnology) A big move partly because of Intercept Pharmaceuticals up 282%! Crazy!!
XRT (Retail) Broke the 50 DMA and a reason for concern
IYR (Real Estate) Could be basing. Need more evidence
XHB (Homebuilders) Was looking for 32.24-maybe today was it-here is one place I would definitely look for that U-turn!
GLD the reversal candle is still intact
USO (US Oil Fund) Possible reversal if it clears 33.30
OIH (Oil Services) Another place to look for a U-turn
XLE (Energy) This group loves the 50 DMA-yet another place for U-turn
XOP (Oil and Gas Exploration) Here too
UUP (Dollar Bull) 21.80 now the next point to clear
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