Major Investing Themes Upcoming

June 11, 2023

Mish's Daily

By Mish Schneider

Looking at the monthly charts of the four major indices, all but the Russell 2000 as we hit mid-June, trade above their 23-month moving average.

Thus far, this is in line with our prediction that by the time IWM hits (if it does hit) 190-200 and the SPY hits 440, the top will be in.

First, the Russell’s have to clear their HUGE resistance at 1900.

SPY has to take out the August 2022 highs and NASDAQ, well overbought, has to get above 370.

Right now, with so much economic data coming up, we are finding it best not to be in a bullish or bearish camp. Rather, we like to think like a trader and not get too wedded to a bias.

Thus far, looking at some key ratios from our Big View product, we have stayed on the right side of the market. All signal risk on.

The SPY is doing better than gold and outperforming the long bonds. Junk bonds are doing better than long bonds.

Those ratios made it clear that the tech rally, long in the tooth, would attract retail money into the small caps, value stocks, retail sector, and some basic materials.

The first 5-6 months and this ongoing rally makes alot of sense.

As the market is forward thinking, investors saw the Fed slowing down rate hikes, inflation cooling, earnings better than expected, a mixed yet robust labor market, tech undervalued and perhaps the worst over for economic contraction.

The big question now is what about the next 6 months-what will the market think the forecast is?

Here are the upcoming reports to look forward to this week.

Of course, the biggie is the FED.

Regardless, we still believe inflation round 2 is coming.

Recent weather threats (from storms to drought), Canadian fires, issues in the Panama Canal and the West Coast potential port strike could easily weaken the dollar and spike the commodities.

Plus, oil-and OPEC, folks are thinking lower oil prices in store, but we know the Saudis want to control supply.

As for the FED-our guess is they will pause for June. And they should.

But even if they raise .25%, can they control supply chain issues and a persistent lack of certain raw materials?

Another feature is that the Treasury is about to buy a trillion dollars of short-term bills, announced this week and then completed on the 12th.

The impact on fixed income bond ETFs is what we are watching.

The Government needs to raise money and auctions are meant to get competitive pricing from buyers (retail and institutional). However, it all comes down to supply/demand.

For picks, please watch recent media links listed below.


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Mish in the Media -
All clips here

Making Money with Charles Payne 06-08-23

Have a Listen-Trading Spaces with Wolf_Financial 06-08-23

Fox Business Coast to Coast Neil Cavuto 06-08-23

CMC Markets Dollar, Yen, Oil, Sugar Futures 06-07-23

Business First AM Market Analysis and GME 06-06-23

ICW Rajeev Suri-Entire Interview with Charts 06-07-23

ICW Rajeev Suri Fed, Inflation and Buybacks 06-06-23

One-on-One with TG Watkins Stockcharts Part 1 06-05-23

Yahoo Finance Market Wrap up 06-02-23

CMC Markets Update on Futures Indices/Currencies 06-01-23

ICW Rajeev Suri Is Market Moving Risk On 05-31-23

Singapore Breakfast with Ryan Huang 05-31-23

CMC Markets-Trading Futures 05-31-23

ICW Rajeev Suri Stagflation 05-31-23

BNN Bloomberg Article Using AI to Invest 05-30-23

Coming Up:

June 12 BNN Bloomberg Opening Bell

June 12 TD Ameritrade Nicole Petallides

June 13 Daily Briefing Real Vision

June 14 CMC live Trading in London 1:30 ET

June 22 Forex premarket show Dale Pinkert

June 23 Your Daily Five Stockcharts

ETF Summary

S&P 500 (SPY) August 2022 high 431.73-and of course 420 now key

Russell 2000 (IWM) 180-now must hold while still miles from its 23-month MA 193

Dow (DIA) 23-month MA 337 pivotal support now

Nasdaq (QQQ) Interesting inside day after yesterday’s drop. Makes 348.18 important for Fri. close

Regional banks (KRE) 45.50 significant resistance. 44 mild support

Semiconductors (SMH) Inside here after yesterday’s decline making Wednesday low important

Transportation (IYT) 233.50 is significant resistance

Biotechnology (IBB) 121-135 range

Retail (XRT) 60 now support and 63 resistance

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