December 26, 2017
By Mish Schneider
I thought for the last week of 2017, I’d go back and look at recent archived Daily’s.
My quest is to search for recommendations I made in both the Modern Family and elsewhere that are now setting up well.
On December 3rd, I did a Daily on Big Brother Biotechnology. https://marketgauge.com/resources/mishs-daily/meet-big-brother-biotechnology/.
At the time I wrote, “IBB is the most highly speculated and volatile sector.
His parents (XRT IWM) and siblings (KRE SMH IYT) may be great at tracking the US economy-YET
IBB plays a big part as well with 97.17% of the ETFs holdings located in the United States.
This year, with the extraordinary bull run in the market, IBB never even got close to making new highs.”
I went to write, “IBB has a huge basket of 160 stocks.
The biggest holdings?
Biogen, Amgen, Gilead, Celgene and Regeneron.”
Earlier, on November 13th I wrote a Daily called, “Can Retail Play “Base” in Vintage Silver Platforms?” https://marketgauge.com/resources/mishs-daily/can-retail-play-base-in-vintage-silver-platforms/
I went to write, “The Retail Sector ETF we like to watch is XRT, or our Granny of the Modern Family.”
Why now on December 26th, do both IBB and XRT matter?
Technically, IBB is holding the key weekly moving averages and remains in a Bullish phase.
If IBB clears 107.50 area, a daily phase change to Bullish could spark fresh interest.
Today, IBB traded up to 107.55 and closed at 107.44.
With a move over the yellow line or 23-week moving average (this is a weekly chart), time to watch if IBB can hold and clear that level, which would mean new speculators are entering the market. A good sign.
Back in November, XRT did the resuscitation thing and rallied from key support above 38.00.
Since then, the weekly chart not only shows how well it held the longer term Moving Average, but also how last week, it cleared the 23-week MA.
With IBB and XRT capturing new money, 2 laggards of the Modern Family relay renewed enthusiasm.
As the year ends, please keep these 2 key sectors in mind as great indicators of where specs want to be in the New Year.
Next Daily Thursday evening.
S&P 500 (SPY) 267 pivotal support
Russell 2000 (IWM) 152.55 key support now
Dow (DIA) 246.75 pivotal support
Nasdaq (QQQ) 157 now resistance
KRE (Regional Banks) 59.25 pivotal support
SMH (Semiconductors) Tired and where money is rotating out of
IYT (Transportation) Runaway gap well intact if does not trade down to 190.31
IBB (Biotechnology) Through 107.50 see 110 at least. Under 105 some trouble.
XRT (Retail) 46.00 pivotal number. 45 pivotal support
GLD (Gold Trust) Still waiting for the US dollar to break 24.24-this looks good now, but would look even better if the dollar breaks.
SLV (Silver) 15.74 resistance and 15.40 support
GDX (Gold Miners) 22.75 area now pivotal support to hold
XME (S&P Metals and Mining) I gave you this at 32.00. Now, like to see 36 hold
USO (US Oil Fund) $60 a barrel a barrier to clear-today’s highs
XOP (Oil & Gas Exploration) 37.00, a new leg and now place to hold
TAN (Solar Energy) 24.20 the 50-DMA
TLT (iShares 20+ Year Treasuries) 124.50 pivotal support
UUP (Dollar Bull) 24.24-24.45 range I am watching to break one way or another.
Every day you'll be prepared to trade with: