July 13, 2017
Mish's Daily
By Mish Schneider
Really.
Not a whole lot more to add about my dog’s just expression until something dramatic happens.
We both seek excitement.
Surely for her, excitement comes in the form of a treat or a walk.
Yet I do not underestimate her commitment to the markets.
After all, she sits faithfully by my side each day watching me trade, tweet and write.
One thing for certain, should the Russell 2000 gap up beyond 143 and leave a runaway gap, I will jump from my chair.
Bella will jump from her dog bed. She’ll think it’s about her. It might as well be.
They say, “Every dog has its day.”
With that in mind I wonder, “When will this protracted consolidation period have its day?
I’ve mentioned the word “drama” multiple times over the last couple of months.
Drama, I presume, can take shape two distinctly different ways.
As per last night’s Daily, one scenario for drama is when, “the Bears finally throw in the towel and buy!”
That could very easily occur when and if:
Furthermore, we cannot discount the impact should Regional Banks (KRE) charge above 56.50.
Or should Resuscitation Granny Retail (XRT) clear 41.00.
The other drama, less likely but also possible-the market gaps lower.
Instead of the prevailing “buy the dip” attitude, investors flee for cover, just like my dog does during a thunderstorm.
In that case, I and many others will frantically swallow Bella’s “Rescue Remedy.”
Until such drama unfolds one way or another, best to remain chill and in the moment.
Two dog-like qualities we traders do best to embody. Woof!
S&P 500 (SPY) 244-245 resistance to clear. 242 pivotal Under 240 not so good
Russell 2000 (IWM) I’d still consider the channel resistance at 142.90 as the number to watch. A gap and run above-sweet! 140 pivotal. 137.50 support
Dow (DIA) Inside day at new highs. 214 now pivotal support
Nasdaq (QQQ) 139.50 pivotal support. 142.29 resistance
KRE (Regional Banks) Must hold 54.75 clear 56.50 once and for all
SMH (Semiconductors) 83.50-84.00 pivotal support
IYT (Transportation) New highs and then a red close-this though, could wake the dead if runaway gaps to new highs
IBB (Biotechnology) Wakey wakey. Must clear 320
XRT (Retail) You’ve heard of Resuscitation Annie? This is Resuscitation Granny. If can get back over 40.00 so much better. Then 41.00
IYR (Real Estate) Sitting in a better chart position
GLD (Gold Trust) Like to see if 115 can hold 116 pivotal and 117.50 a better place to clear
SLV (Silver) couldn’t hold 15-now pivotal
GDX (Gold Miners) 21.00 the next support level
XME (S&P Metals and Mining) Great move thanks to steel and copper
USO (US Oil Fund) If this clears 9.65 is it exciting
TAN (Solar Energy) Inside day after a big move-20.00 support
TLT (iShares 20+ Year Treasuries) 124-125 resistance. 122.40 support
VXX (Volatility Index) No drama no fear
UUP (Dollar Bull) Closed under 24.80-so that’s a good pivotal point
FXI (China) Another new yearly high
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