May 20, 2012
Mish's Daily
By Mish Schneider
If there were ever a time to preach the importance of a trading plan, it’s now. Unless you have been committed to the short side, as a potential buyer looking for signs of a bottom, no day last week remotely suggested that one was in place. That means the meager intraday rallies that did not yield volume nor penetrate key resistance areas should have kept you aside. Can a bottom happen now? Of course. Will you know what to look for? Let’s Drill Down.
S&P 500 (SPY) 129.35 the weekly moving average. I wrote that last Friday never thinking we would get close.
Russell 2000 (IWM) Would have to take a move over the 200 DMA with volume and why don't we add, a close there to get buyers interested
Dow (DIA) 122.00 area next support if slaughter continues.
NASDAQ 100 (QQQ) Never seen such low daily RSIs. But back above 61.85 could see some relief
ETFs: Only mentioning if see anything worth mentioning
GLD Nice gap follow through if gap holds
XLF (Financials) Touched down on the 200 DMA
XRT (Retail) Narrow range day and held Thursday's lows on Friday against the EMA-worth mentioning
XLE (Energy) At 62.50, I would have to be a buyer
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day and held Thursday's low on Friday. TLT closed unchanged-could be running out of steam. 125.03 October high.
Every day you'll be prepared to trade with:
