Love Child, Never Quite As Good

June 16, 2014

Mish's Daily

By Mish Schneider

Diana Ross and The Supremes

It seems that the week has kicked off setting the tone possibly until the FED announcement mid-week, or possibly until triple options expiration on Friday. In other words, choppy, slow, low volume, directionless, but maintaining the bull phase unless the geopolitical situation heats up more.

Unless you were in solar stocks (we are in the ETF TAN and gave that a head’s up by writing this over the weekend, “Confirmed a bullish phase and looks like it’s just getting going”) or TSLA, the rest of the action failed to ignite.

The best looking index at this point, The Russell 2000s or IWM. As a student of diversion and rotation in the macro picture, I find that fascinating as IWM was my go to last year; then lost favor this year and currently, presenting that it might be time to take it more seriously again.

Looking at the floor trader pivots and how they line up in IWM for Tuesday, over 116.30 healthy and under 114.70 not so much.

S&P 500 (SPY) Waffling around here andover 194.80 back in the saddle

Dow (DIA) Has to clear 168.10 otherwise under 167 trouble

Nasdaq (QQQ) Hovering around the 10 DMA and has to clear above 92.80 or looks vulnerable under 91.75

XLF (Financials) Closed right on support so if todays low holds, as t clear 22.65

KRE (Regional Banks) 39.85 area to clear now

SMH (Semiconductors) I’m running out of superlatives and metaphors to describe this

IYT (Transportation) Looks vulnerable unless it really moves up over 145.60

IBB (Biotechnology) Over 250 next stop around 270

XRT (Retail) Good end of day move and worth watching Tuesday

IYR (Real Estate) This could go to a warning phase

ITB (US Home Construction) Like this over 24.25