October 30, 2014
Mish's Daily
By Mish Schneider
I wondered if there was something wrong with my Tradestation platform today given some super crazy ticks and intense polarization between the gainers and losers.
Perhaps we can notch it up to the eve before the eve of All Hallows’ Eve; but yowza folks, high finance taking on a whole new meaning!
With Metals, Metal Miners and Natural Gas guillotined while Biotechnology, Retail and Financials bore crowns, the true star Thursday was Visa and Mastercard. Mastercard! How many of you even have that card as part of your collection? Charge cards rock Wall Street in a time when the economy is expanding (Gross Domestic Product) as Personal Income for 99% of the US population stagnates.
One of the regulations coming up for a vote in New Mexico next week is decriminalizing marijuana from a felony to a misdemeanor. (Don’t get me started on overcrowded jails filled with folks busted for pot!) Medical marijuana is already legal, yet the state is not ready to commit to full on legalization like our neighbor to the north-Colorado.
Perhaps the credit card companies are already benefitting from recreational pot sales. Perhaps the dark pools are filled with edibles. Perhaps the country should just get on with it and legalize marijuana so when the market gets nuts, we can assume traders are high or at least they should be.
Regardless, we are having fun keeping one step ahead of the market, currently daytrading and short-term miniswing trading more than swing trading.
I cannot wait for Friday! End of the month, the indices are incredibly well poised and we get to wear costumes!
S&P 500 (SPY) 196.84 the 50 DMA to defend with a lot less overhead resistance to deal with
Russell 2000 (IWM) 113.82 the 200 DMA to defend with room to 120-yes, 120!
Dow (DIA) Looks like it could take out the highs although I would prefer to see some consolidation first.
Nasdaq (QQQ) 100.56 the 2014 high, and I suspect could happened tomorrow
XLF (Financials) 23.44 cleared, now pivotal
KRE (Regional Banks) Confirmed phase change to Accumulation
SMH (Semiconductors) Lots of put buying in Intel and this failed the 50 DMA. I don’t; see any irreparable damage however
IYT (Transportation) 2 day rest-even better
IBB (Biotechnology) Note to self-do not underestimate the power of pharmaceuticals!
XRT (Retail) Beautiful move today-but then again, charge, charge, charge!
IYR (Real Estate) Good consolidation leading to more possible new highs
ITB (US Home Construction) Held the 200 DMA and still has to clear 24.26
GLD (Gold Trust) Tarnished
USO (US Oil Fund) Down but not too critical
XLE (Energy) Has to clear 86 to keep going
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs 120 pivotal unless this begins to break further below 117.50
UUP (Dollar Bull) A close this week over 22.76 is really good-looks like it will
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