November 1, 2012
Mish's Daily
By Mish Schneider
Those interesting setups in certain sectors/groups I wrote about Wednesday night really paid off if you were watching. Retail, Financials, shone bright. Semiconductors showed up too! S&P 500 broke out of its sideways pattern, stopping short of the fast moving average and both NASDAQ and Russell 2000 proved once again how powerful following a range break of an inside day often turns out. A slew of good economic data didn't hurt, but the tech bubble told us that the internals were improving.
S&P 500 (SPY) 142.28 now support. 143.70 the next overhead resistance or the 50 DMA.
Russell 2000 (IWM) Huge surge in volume! 82.00 important support with overhead resistance at 83.06
Dow (DIA) 131.60 now support. 133.25 next overhead area.
NASDAQ 100 (QQQ) Do not love the low volume bounce off of the 200 DMA which means still have to watch the leaders for follow through. Thursday action was good pricewise, but now we need some buyers in AAPL and GOOG.
ETFs:
GLD Perhaps we are truly seeing a divergence between equities and GLD. 166 held for now. But the performance suggests weakness not over.
XLF (Financials) 16.00 becomes important once again
IBB (Biotechnology) Worked off oversold condition, but still not a first choice for strength any longer
SMH (Semiconductors) Cleared the 65-weekly moving average handily. A weekly close above and the 200 DMA next hurdle.
XRT (Retail) Gorgeous. Buyer of dips provided 62.70 holds
IYT (Transportation) Real close to the 200 DMA
IYR (Real Estate) Lagged. 64.45 an area which would bring it back to life if clears.
USO (US Oil Fund) Watching to see what happens at 32.50
REE (Rare Earth Element) Was up 6.37%.
GDX (Gold Miners) Inside day
TBT (Ultrashort Lehman 20+ Year Treasuries) 63.60 area to clear.
Every day you'll be prepared to trade with:
