Drop-Kicked Out Of The Nest

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Concerns in the market are not unwarranted, yet there are such bright spots. Therefore, more important than ever to note the sector and group rotations and make sure you are diversified.

With the FED clearly on taper mode, the dollar seems like it wants higher this year. So ask yourself, what will do well and what will suffer if the dollar continues to firm?

And also ask yourself, at what point do we go from deflation in the US economy to reflation (we are a long way off from inflation). If you can answer these questions and come up with a plan, then you are good to go. If not, then I advise you to consult with someone who does have a plan with the macro picture in mind. Otherwise, this year will become costly. This is not 2013!

5 days in and the tone set for indices is correction in a bull phase. The forgiving market of 2013 on the back of lots of FED action is over. This is not to scare you-well, maybe a little. Scared straight that is!

S&P 500 (SPY) 184 is the area to clear since the gap last week. 182 held up today so if it breaks, see 180 easily. The doji day (when the opening and closing price are the same of really close) shows how tentative things are

Russell 2000 (IWM) 115.26 will up the game just as under 114 will bring more selling

Dow (DIA) 164 key support with 165 the point to clear

Nasdaq (QQQ) 87.58 next point to clear, 87.25 pivotal then, 86.00 the big support to hold

XLF (Financials) Inside day and keeping hope alive unless it breaks 21.80

SMH (Semiconductors) Cleared the moving average. 42.30 and over will most likely mean safe to go back in the semi water

IYT (Transportation) Inside day and similar scenario to retail ETF

IBB (Biotechnology) New highs-one very big reason to not be that negative

XRT (Retail) Tested the 50 DMA support and held-needs to do that again or vulnerable

IYR (Real Estate) Could be basing. Need more evidence

GLD Could very well hold today’s low and then move back up-the reversal candle is still intact

USO (US Oil Fund) Testing the low from 11/27-and oversold

OIH (Oil Services) Looking vulnerable to the 200 DMA

XLE (Energy) Like over 88.00

UUP (Dollar Bull) 21.80 now the next point to clear

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