Life and Death. Same Line Viewed From Different Sides

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Lao Tzu

Overdue on my part, I would like to dedicate today’s commentary to Dennis Peterson who passed away on June 15, 2015.

Dennis was a contributing writer for Technical Analysis Stocks and Commodities Magazine, among his many other talents and achievements. For us at MarketGauge and particularly for me, he was a huge supporter and friend.

Dennis’ first article about MG appeared in the magazine in 2000. His last reference to me specifically and my “stock picking skills” was in 2014. In 2012 in a review of our Premium Trading Service he wrote, “Schneider is a first-class trader.”

Dennis reviewed other stock trading tools and often ended those reviews with, “No tool is complete without a good stock picker. I recommend Michele Schneider.”

As a communication tool, Twitter for traders cannot be beat. Originally reserved for our subscribers, I rarely offered specific stock picks on my public twitter stream @marketminute.

However, since MG began as primarily a developer of financial information software, evolving to both education and recommendation services later on, currently most of our recommendation services are now automated.

Dennis recognized MG as a company on the technical cutting edge. He helped me personally by continually reminding his readers of the importance of a good analyst.

As we have replaced a lot of our discretionary trading systems with automated trading models, I have turned more to Twitter to post my ideas.

In fact, I began this week posting, “Watch list: Fave picks. Longs: GM ADSK FB FSLR ALK WNR Shorts: CIEN LNKD LRCX PG SNDK. Know your own setup, timeframe, risk”

Several of these picks are still in play.

I will continue to bring my very best efforts at providing you with my macro perspective daily through this commentary. Today, please read my specific thoughts on the major ETFs below.

I wholeheartedly thank Dennis Peterson, TA Stocks and Commodities Magazine and Twitter for offering me platforms to do what I love best. (And a special shout out to Benzinga! For today’s interview please click on the link here)

Dennis, I will continue to try to do you proud! Thanks friend. You will always be in our hearts and minds. May you rest in peace.

S&P 500 (SPY) Make that 23 times SPY has crossed the 50 DMA. Now back in an unconfirmed warning phase, overall, this type of phase confusion is not a stable trading environment. Levels: 207.86 the 200 DMA 209.53 the 50 DMA

Russell 2000 (IWM) A weekly close under 118.85 will be a sign that the 2015 low 114.20 is soon come. Otherwise, consider 120 pivotal and a great place to recapture for strength

Dow (DIA) 174.44 continues to be pivotal. Unless that clears, a weekly close under 174.80 likely means this will see levels to 170 for support

Nasdaq (QQQ) Let’s put it this way, if the market stabilizes, go here to shop for longs besides the specific stock picks mentioned above. The 50 DMA and pivotal point 110.17

XLF (Financials) Trying to hold over 25.00 and still in a bullish phase. Another place for strength if market stabilizes

KRE (Regional Banks) 41.65 support 42.85 pivotal, 43.60 resistance

SMH (Semiconductors) the monthly moving average is 49.80 which is only meaningful if closes below/above on August 31st. That’s a ways away, but for now, consider 50.26 pivotal and if cannot clear, 48.90 next level of support.

IYT (Transportation) I still like this and have for last 3 weeks. Yet another place to go for strength if market stabilizes

IBB (Biotechnology) Interesting doji day. Would not necessarily buy here, but would certainly like to see this hold up

XRT (Retail) Seems lower prices in store if breaks under 96. Over 97.15 would be a pleasant surprise

IYR (Real Estate) 75.50 good spot to hold a possible bright spot of the sectors

XHB (US HomeBuilders) Miraculously held the runaway gap

GLD (Gold Trust) 109.20 the 50 DMA-will be interesting to see if this has more legs

SLV (Silver) 14.64 the 50 DMA to clear and hold

GDX (Gold Miners) Big volume this week and a solid base forming

USO (US Oil Fund) Could have been a blow off bottom but need some more proof before laying money on that

TAN (Guggenheim Solar Energy) With 31.43 a stop, over 32.70 better

TLT (iShares 20+ Year Treasuries) Closed back over the 200 DMA. FOMC intimates no rate hike yet

UUP (Dollar Bull) Back in an unconfirmed warning phase

EEM (Emerging Markets) Highest daily volume this year with oversold conditions so a blow off possible here