June 19, 2012
Mish's Daily
By Mish Schneider
Hello 50 DMA! Nice to see you again. All indexes are now back into an unconfirmed bull phase. And so we have it, a perfect lesson on following the phases as they deteriorate and improve-all in the month of June! We like 2-days to confirm a phase change, which makes the analysis easier. We got long many ETFs and stocks a while back and have cushions. Now, the 50 DMA becomes the area the market has to support. The internals are approaching overbought. Best case scenario is some consolidation to bring in sidelined investors who are still waiting to see what happens here. And of course, there's the FOMC.
S&P 500 (SPY) 134.90 the 50 DMA eyes will be on
Russell 2000 (IWM) 78.13 the 50 DMA with some support at 77.84 as well
Dow (DIA) 127.26 the 50 DMA
NASDAQ 100 (QQQ) 64.03 the 50 DMA but unless it breaks 63.15, will look at dips as buy opportunities. Plus, will be hard to chase up here
ETFs:
GLD The 50 DMA support to hold
XLF (Financials) Great follow through after DOJI day. 14.62 the overhead 50 DMA 14.30 the area to hold
IBB (Biotechnology) New all-time highs
SMH (Semiconductors) Recommended a follow on this over the 200 DMA last Friday. Now, looking at the 50 DMA as some resistance as it approaches overbought
XRT (Retail) Getting closer to the 50 DMA, but remains a first place to go if the market should rollover for a short
IYT (Transportation) Like to see some consolidation here
IYR (Real Estate) Paused with an inside day and DOJI.
USO (US Oil Fund) Over 31.90 gets interesting
TBT (Ultrashort Lehman 20+ Year Treasuries) 16.12 was the point to clear and still is
Every day you'll be prepared to trade with:
