June 23, 2016
Mish's Daily
By Mish Schneider
It’s a Mad, Mad, Mad, Mad World when our Modern Family embarks on a crazy car chase in search of buried treasure.
In the film, a car speeds along a road when the driver (an ex-con) loses control and heads off a cliff. Four other cars follow the crash and hear the dying man’s last words that he hid a fortune of stolen cash. Hence, the race to find the money begins.
If the dying man is Brexit and the hidden cash is the money that only relatively few speculators are making (given all the scary press ahead of Brexit), then it’s up to our Modern Family driving those other 4 cars to lead the masses to profit.
But wait, the plot thickens. As the 4 cars search for the loot, they are unknowingly followed by a police captain (Janet Yellen) who suspected the ex-con of hiding the stolen money.
The lead car driver is Sister Semiconductors. Featured in last night’s daily as a glass both half full and half empty, SMH’s price action took her to highs not seen since the end of June 2015. Her cup runneth over.
Granddad Russell 2000 drives the next car. In a Bullish Phase since May 24th, he’s hot on Semi’s trail.
How does the market end the week? Will it be anything like how the film ends?
In the third car drives Prodigal Son Regional Banks. Always one who likes to chase money, the Golden Cross he had 2 days ago finally pays off.
In the fourth car we see Granny Retail, Brother Transportation and Big Brother Biotechnology. With Transportation driving, their car desperately tries to pick up the rear.
If all 3 sectors remain stubbornly in their negative phases thereby running out of gas, that could put the brakes on the lead cars. Of course it’s also possible IWM, SMH and KRE leave the weaker ones in the dust.
Yet let’s not forget that way in the distance, out of sight and out of mind, Janet Yellen, our police captain, is in hot pursuit. Her passengers are the 12 Federal Reserve Presidents jammed in with her like clowns in a Volkswagen.
Should the Family find the money that Brexit hid, it’ll be no surprise that the Fed sits and waits in the wings to raise the interest rates and take that money right out of the Family’s hands.
At the end of It’s a Mad Mad, Mad, Mad World, after everyone betrays pretty much everyone else, those left with the suitcase of money run from the police and end up stranded on a fire escape. The suitcase of money opens and the money falls to the street below where passers-by scoop it up.
That would be a fine conclusion. What Brexit fears stole, the Fed can’t have and the Modern Family helps the little investors get a wee bit richer.
S&P 500 (SPY) Back to an unconfirmed bullish phase. 208.00 is the 50 DMA and pivotal. 211 next hurdle.
Russell 2000 (IWM) 115 pivotal. Took out 116.50-Gap to fill 117.29 impressive
Dow (DIA) Unconfirmed return to bullish phase. And, only 20 points away from Terror at 18k in the Dow!
Nasdaq (QQQ) Over 108.50 proved renewed strength. Now that is pivotal.
XLF (Financials) 23.25 pivotal as the 50 DMA.
KRE (Regional Banks) Golden Cross saw price below and today price cleared the moving averages. 40.10 pivotal.
SMH (Semiconductors) Sisters are doin it for themselves! 57.75 now pivotal
IYT (Transportation) 139.65 the point to clear if this is going to participate
IBB (Biotechnology) A miracle would be a move back over 270
XRT (Retail) Granny has to stay over 41.75-42.00
IYR (Real Estate) 78.25 support level with 80 resistance
ITB (US Home Construction) Holding the 50 DMA and needs to clear 28
GLD (Gold Trust) 120 support-landed on the 50 DMA
SLV (Silver) 15.75 support with overhead at 17.00
GDX (Gold Miners) 25.40 on a weekly closing basis pivotal
USO (US Oil Fund) Not out of the woods though until we get a weekly close over 12.15. 11.60 support
UNG (US NatGas Fund) found support at 7.90 so back to looking at the 200 DMA to clear
TAN (Guggenheim Solar Energy) My ever watchful eye here wants to see some more firmness
UUP (Dollar Bull) 24.20 now resistance
EWG (Germany) Earlier I wrote to watch this for a move up. Like it longer term if closes the week over 26
FXI (China Large Cap Fund) Unconfirmed Accumulation phase
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