May 13, 2013
Mish's Daily
By Mish Schneider
I want to call this a boring, low volume correction, but really, only some of the sectors and groups did some correcting. The indexes except for a smidgeon red in the DIA and Russell 2000, closed green. In bull markets, it’s not unusual to see corrections in time rather than price. It’s also not unusual to see divergence emerge in the varying groups. For example, Biotechnology, the sweetheart of 2012 and thus far 2013, did extremely well. Semiconductors finally settled down a bit along with Transportation and Retail. With earnings season winding down, the focus should continue to be on the FED’s future policy pertaining to easing up on the Quantitative Easing, the US dollar and interest rates. Otherwise, the start of the week has put the financial sector in the spotlight, particularly JP Morgan which closed up 1.5%.
S&P 500 (SPY) Eked out new highs but also worked off some of the near-term overbought conditions.
Russell 2000 (IWM) 97-98.00 (got real close to today) reasonable target if holds 95.00.
Dow (DIA) Inside day with 152-53 resistance with gap low from May 06th crucial point to hold.
NASDAQ 100 (QQQ) 74.00 still a target but no reason 77-80.00 not in the cards unless this crashes from 71.80
ETFs:
GLD Inside doji day.
XLF (Financials) After 2 inside days, this cleared Friday’s high making a new high 19.35 before settling just below.
IBB (Biotechnology) Whoa! Has 100% overbought on the weekly relative strength indicator.
SMH (Semiconductors) Corrected today. A move down to 37.00 would be good for a new entry
XRT (Retail) Minor correction after strong retail numbers early Monday.
IYT (Transportation) 112 would be a good place to see hold
IYR (Real Estate) Consolidating with housing starts coming up later this week
USO (US Oil Fund) Inside day.
OIH (Oil Services) Inside day. 45.12 is the 2013 high and if clears, a very bullish sign
XLE (Energy) Inside day. Through 81.00 also has huge potential
TBT (Ultrashort Lehman 20+ Year Treasuries) Confirmed bullish phase.
XOP (Oil and Gas Exploration) 60.00 resistance
UUP (Dollar Bull) Now, 22.69 the 2013 high has to clear.
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