September 4, 2013
Mish's Daily
By Mish Schneider
Guess what I’m happy to report? No, it’s not that biotechnology continues to rock and roll making new highs yet again (although that is not too shabby considering I have been on top of that group forever!) And it’s not that the Dow closed up nearly $97.00 either. Give up then? Semiconductors! Yes readers, they returned during Wednesday’s session to an unconfirmed bullish phase. And this makes me happy. Not just because we got long today-of course not! I LOVE when a technical chart patterns works!! The channel that goes back on a monthly chart for 13 years has cleared once again. That channel has to remain cleared as we head into the rest of September-a long way off-for now, though, we can use a really tight risk around the channel point giving us a perfect trade setup.
S&P 500 (SPY) Chasing an upward sloping 50 DMA which at some point has to clear
Russell 2000 (IWM) Inside day.102.50 is a good area to see clear. 100.00 is now the closest support level to hold
Dow (DIA) Cleared and closed over 149, which I have been calling a game changer. Now, that needs to hold to ring true
Nasdaq (QQQ) Cleared and closed above 76.55 the gap fill from the drop after 8/30. Recent highs are within reach. 74.94 is the 50 DMA
ETFs:
XLF (Financials) “19.78 good point to clear, then we look at the 50 DMA.” Closing price 19.75
SMH (Semiconductors) 37.50 a good point to hold now
XRT (Retail) Inside day. Like it better over 79.03
IBB (Biotechnology) New highs!
IYR (Real Estate) Inside day.
XHB (Homebuilders) 28.90 good point to clear
GLDA bit tough to gauge risk for long or short right now
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day
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