November 24, 2014
Mish's Daily
By Mish Schneider
T.S. Eliot
This past weekend, we got to see our grandbaby. His room has everything one would think appropriate for a baby’s room: Crib, changing table, diapers, lotions, changes of clothes, bottles, etc. But, if one does not have any idea how to handle a baby, looking around at the accoutrement not knowing what to do with it all, you just might wind up with one unhappy baby on your hands.
That got me thinking about charts and technical signals. Sure, you might follow a good trader into a stock because he/she reports they like the stock, it has volume flow, a breakout, options activity, etc. But before you dutifully follow, I suggest you do this-ask the trader, where the stop is, what the position size should be, what the timeframe of the trade is, and where the profit targets are. If that trader does not have a clear and defined trading plan, guess what-they cannot answer you. And if he/she cannot answer you and you haven’t a clue-you’ve got nothing more than a well-supplied room housing a potentially cranky trade that no matter how much cajoling you give it, just won’t stop going down.
Does that mean that the most knowledgeable moms can guarantee their baby won’t ever cry? Of course not. Does that mean that even the savviest most systematic traders won’t ever lose? No way!
As we head into the Thanksgiving holiday, I would like to give thanks to first, you my readers. Thank you for giving me an outlet to share my thoughts, creativity and trading ideas. Secondly, I would like to give thanks to Marketgauge and our team of traders who share with you a well-defined, repeatable and systematic way of trading in all market conditions that year in and year out, makes us and our subscribers profitable!
Now on to my analysis:
S&P 500 (SPY) Teeny tiny range inside day. Looks like pre-Thanksgiving
Russell 2000 (IWM) Did it!! Closed over 117.80 with an inside day and looks like the gravy now rather than the turkey!
Dow (DIA) Inside day and quiet
Nasdaq (QQQ) New high close
XLF (Financials) Held 24.14 to make a new high close
KRE (Regional Banks) Inside day and has to clear 40.37
SMH (Semiconductors) New highs again
IYT (Transportation) Held 164 with an inside day
IBB (Biotechnology) Good move with the high 302.98 resistance
XRT (Retail) New highs why reversal candles always need another day to confirm
IYR (Real Estate) Holding 76 marginally
ITB (US Home Construction) 2014 high 26.56
GLD (Gold Trust) 116 the 50 DMA to clear
GDX (Gold Miners) 20.37 now the 50 DMA to clear
USO (US Oil Fund) Probably wise to stay away from until after Thanksgiving or the OPEC meeting
XLE (Energy) Confirmed the recovery phase
XOP (Oil and Gas Exploration) If gaps over 62.95 worth paying attention to
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs Closed above the pivotal area at 120 again with 120.46 resistance to clear
UUP (Dollar Bull) Inside day near highs
Every day you'll be prepared to trade with:
