July 1, 2014
Mish's Daily
By Mish Schneider
This week’s evening watches will be prepared by Matt Mullins. Michelle Schneider will return onJuly 7.
Wow! New highs in all four of the major indexes. That was great, but now we must be cautious about chasing strength. As we near the Fourth of July, volume will wane. Therefore, it is likely that the market will spend the rest of the week digesting this move. I would not be surprised to see inside days in the indexes tomorrow. So, be cautious and focus on stocks with good volume, good support and instruments that have not already made a big move.
S&P 500 (SPY) New all time high and all time high close.
Russell 2000 (IWM) Gapped over the important 6/24 high and kept going to new all time highs.
Dow (DIA) Cleared the 10 DMA and made a new all time high but, not an all time high close.
Nasdaq (QQQ) New all-time high and all-time high close- again! Getting extended and has a high RSI. Digestion likely.
XLF (Financials) This looks explosive over 23.00.
KRE (Regional Banks) Needs to clear 41.00.
SMH (Semiconductors) New all time high and closed over recent highs. Gapped higher for a possible runaway gap.
IYT (Transportation) Another instrument clearing recent consolidation.
IBB (Biotechnology) Breaking out of compression.
XRT (Retail) 88.95, the November high is the next resistance but may test it.
ITB (US Home Construction) 25.27 is the next resistance.
GLD Digesting
USO (US Oil Fund) Holding the gap, but barely. One of the weakest sectors.
OIH (Oil Services) Possible slingshot high.
XLE (Energy) Compressed.
XOP (Oil and Gas Exploration) Similar chart to XLE
TAN (Guggenheim Solar Energy) Love this longer term. 44.78 needs to clear.
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT Filled a gap on the daily chart-now if it starts to roll over, would be interested in looking at a short
UUP (Dollar Bull) Inside day.
EWG (Germany) Nearing the 50 DMA
IFN (India Fund Inc.) 25.38 is the 80 month moving average
Every day you'll be prepared to trade with:
