May 7, 2013
Mish's Daily
By Mish Schneider
Almost a repeat of Monday only better, the small caps (IWM) continued climbing along with the transportation and financial sectors, while the long bonds continued going south. Traders tend to underestimate the power of Runaway gaps so it is my hope that the definition over the weekend helped to elucidate the move of the last two days. The retail group made new highs along with the homebuilders sector and biotechnology followed through to the downside after the exhaustion gap we saw and also reported about over the weekend. The Oscillators are extended nearing overbought conditions in the S&P 500, but they are yet to show signs of a reversal from the now startling Industrial Average over 15,000! As we continue to reach profit targets, smart money is locking in on this historical move while holding tails and trailing up stops on balances.
S&P 500 (SPY) 161.00 good point to hold with 164 target
Russell 2000 (IWM) 97-98.00 reasonable target it holds 95.00
Dow (DIA) Certainly eradicated the concerns from Monday’s pause with a beautiful performance today.
NASDAQ 100 (QQQ) Heeding Monday’s warning of not buying at the highs, nor having concern if already long from lower levels, NASDAQ took the needed rest.
ETFs:
GLD Gap lower under the fast moving average, but closed holding the larger gap from 4/25 and held 140.00 a pivotal area with a doji (opening and closing prices nearly identical) day.
XLF (Financials) Approaching some longer term resistance
IBB (Biotechnology) Head’s up on the exhaustion gap left last Friday. Now, getting close to support at 173.40
SMH (Semiconductors) Relative to the other groups, took a rest as it retreats marginally from a channel that goes back 12 years.
IYT (Transportation) Hope you rode the transportation train-a group I have loved for quite some time!
IYR (Real Estate) Good follow through after Monday’s inside day rest
USO (US Oil Fund) Interesting inside day after confirming an improved phase change
OIH (Oil Services) 45.12 is the 2013 high
XLE (Energy) New 2013 high
TBT (Ultrashort Lehman 20+ Year Treasuries) Filled a gap to 62.20 with today’s high 62.24
XOP (Oil and Gas Exploration) 60.00 some resistance
UUP (Dollar Bull) Watching that 200 weekly moving average like a hawk
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