May 9, 2013
Mish's Daily
By Mish Schneider
Semiconductors (my absolute favorite sector for 2013 and one I have made no secret about) rocked out today, confirming a breakout over a channel that goes back over 11 years! Will the trend continue? All signs point to yes; but, nothing goes straight up which means, new buy opportunities on corrections should emerge. And the rest of the market? Textbook runaway gap-what more can I say? Of course the relative strength is gaining as are the overbought conditions. However, it does seem as though the move has been almost too orderly as if a melt up needs to occur before we can even begin to think about a top in place. Of course, a nasty gap down can change that. For now, keep following the sectors that have room and mainly, watch for any sign of flights to safety (like in long bonds).
S&P 500 (SPY) 161.00 good point to hold with 164 target
Russell 2000 (IWM) 97-98.00 reasonable target it holds 95.00
Dow (DIA) 152-53 resistance
NASDAQ 100 (QQQ) One day rest Tuesday and back in business today. 74.00 remains a target.
ETFs:
GLD 141.50 is now a good place to watch for a hold. With today’s gap higher, it seems GLD is attracted to the overhead 50 DMA
XLF (Financials) 19.38 overhead resistance
IBB (Biotechnology) Held the support with a meager bounce.
SMH (Semiconductors) You’re Unbelievable!
XRT (Retail) Still going.
IYT (Transportation) 116 target
IYR (Real Estate) Where do these all stop? No matter. Let’s just wait for the signs and have fun!
USO (US Oil Fund) The inside day led to a rally. 34.86 next resistance
OIH (Oil Services) 45.12 is the 2013 high
XLE (Energy) After a new 2013 high, inside day.
TBT (Ultrashort Lehman 20+ Year Treasuries) Took a rest but does not look done.
XOP (Oil and Gas Exploration) 60.00 resistance
UUP (Dollar Bull) Watching that 200 weekly moving average like a hawk
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