October 17, 2012
Mish's Daily
By Mish Schneider
Market acted like a good little bull-pausing as it nears resistance yet with no real harm done. Sector rotation continues as well with Semiconductors back under pressure and Homebuilders the big winner. Financial sector doing well and after commenting on the 9 days of a boxed trading range that finally broke on Tuesday, Oil Services rocked. And of course-earnings season-that only adds to the fun.
S&P 500 (SPY) Geoff, president of Marketgauge, substituted for me Tuesday (Thanks Geoff) and wrote initial resistance at 146.34. The high Wednesday-146.32. Next level 147.20 then 148.11 then onward to new highs. 144.75 the fast moving average support. Second accumulation day in volume.
Russell 2000 (IWM) 83.17 the fast moving average support. 84.54 next line of resistance
Dow (DIA) Low volume day.
NASDAQ 100 (QQQ) Right up to the 50 DMA resistance and still in a weak warning phase. Not expecting too much until the big ones report
ETFs:
GLD Got real close to 170 and until it crosses back above, remains in defensive mode
XLF (Financials) 16.44 the 2012 high.
IBB (Biotechnology) Had the big run this year so really not my first choice anymore as the place to load up long, but good to see it stay firm
SMH (Semiconductors) struggled, but maintained an inside day
XRT (Retail) Would like to see it hold 62.90.
IYT (Transportation) In one week I wrote, watch the fast moving average, watch the 50 DMA and now watch the 200 overhead-now that's a move!
IYR (Real Estate) Today's low is important to hold.
USO (US Oil Fund) First place to look for any new shorts
OIH (Oil Services) Unconfirmed phase change to bullish
XLE (Energy) It cleared 73.35 Tuesday and followed through perfectly
TBT (Ultrashort Lehman 20+ Year Treasuries) Read today someone tried to break into the Federal Reserve. Is he long TLTs I wonder?
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