Gods Were Bored, Therefore Created Human Beings

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Soren Kierkegaard

The big news for Thursday-relatively-are the small caps comeback, outperforming the rest of the indices percentagewise! However, before we get too excited, that range established over the last two weeks remains solidly there with NASDAQ now posting two inside days.

The Dow posted an inside day as well. Therefore, this whole trading range thing which I’m sure is boring the heck out of my readers, is actually becoming super exciting to me. The longer the range lasts, the more explosive the move is after the range breaks up or down!

Our portfolio also prospered today with the move in the Regional Banks ETF (KRE), which leads me to repeat the information I have been tracking on interest rates and the now confirmed warning phase in the Long Bonds (TLTs).

With some other interesting moves-such as the possible reversal off the lows in oil, natural gas and gold miners, one does wonder whether they are all doing the dead cat bounce thing, or anticipating a move by the Federal Reserve next week capping the recent buzz about the rise of the rates. Or perhaps, these commodity related instruments like the strong dollar and higher rates after all. Time will tell. Never forget the tried and true risk/reward parameters when dipping in your toes long or short.

Finally, a solemn remembrance of 13 years ago. Our workplace for 15 years, the World Trade Center and the tragedy of the friends we lost will stay forever in our hearts and minds!

S&P 500 (SPY) Gonna repeat, 200 pivotal over 200.70 good but it’s the top of the range that counts most

Russell 2000 (IWM) This holds so much better overall! 115 key support

Dow (DIA) Inside day. 170.83 has to clear 170 pivotal

Nasdaq (QQQ) 2 Inside days! Definitely watch this range break

XLF (Financials) Range bound but solid

KRE (Regional Banks) Yay! Not far from our first target

SMH (Semiconductors) The 2014 leader on a rest which is just fine

IYT (Transportation) Strong day

IBB (Biotechnology) Inside day

XRT (Retail) Retail Sales out Friday but good day in the ETF

IYR (Real Estate) Tested and held the 50 DMA

ITB (US Home Construction) In a tight range making this worth a watch for a break either way

Metals and Mining (XME) What an instrument can do when oversold and sitting on a major moving average-has to confirm a bottom now

USO (US Oil Fund) Possible reversal candle

OIH (Oil Services) Confirmed a bottoming candle if now holds 51.97

XLE (Energy) Same as OIH with support at 93.81

XOP (Oil and Gas Exploration) Confirmed reversal candle provided the 200 DMA holds

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs confirmed warning phase