January 18, 2012
Mish's Daily
By Mish Schneider
Did the market hear me or was it just obvious that the doldrums would come to an end and move in the direction of the phase with just a little more patience? Thank you market for giving us volume, follow through on both the move and gaps, and lots of active trades to choose from.
S &P 500 (SPY) Not overbought and well positioned over the October high. Volume also posts another Accumulation Day. That makes 3 in the last 2 weeks.
Russells 2000 (IWM) This didn't make it easy, but to its benefit, gave us lots of time and opportunities to respect the breakaway gap on January 3rd and get long.
NASDQ (QQQ) Up 8.4% YTD after the breakaway gap January 3rd. First one to clue us in, now could be first one to get overbought-but dips are buy opportunities.
ETFs:
GLD* Wrote yesterday "161.65 point to clear". Today's high 161.64. Watching closely this to gap through the triple tops or, possible still, for this to rollover.
XRT (Retail) The moral of this story is that when next direction is unclear, stay away. BUT, once the direction is obvious, jump in with both feet.
XLF (Financials) Unless this gaps under 13.58, looks likely to cross the 200 DMA at 13.94 with recent high 13.97. Then 14.17 the October 27th high.
IYR (Real Estate) Not the first choice after today's activity since major overhead resistance still resides at 60.00.
IBB (Biotechnology) Thinking that 116 (or real close by) is a good place for this to take a breath
SMH (Semiconductors) If you see "Inside day"-that is a signal to follow the way the range breaks thereafter.
XLE (Energy) 1 close above the 200 DMA. Do I hear 2?
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