February 24, 2014
Mish's Daily
By Mish Schneider
Remember our discussion about melt ups, tops and ignoring logic? It surely seems like we are in the midst of a melt up, but not necessarily the making of a top until we see some VOLUME!
Not a huge fan of buying new highs, since I find that it lends itself to sitting long, watching corrections and then hoping to be right. Instead, I am an anticipatory trader, looking for inflection points near lows or major chart points.
With that said, I have several areas I am watching for opportunities, not the least of which are interest rates to firm, along with volatility or VXX, which currently has not tested recent lows and held with an inside day during Monday’s session.
I find that like before one moves into a new community, good to know whether the reputation of the inhabitants is positive or negative. But, regardless, one can always count on finding both awesome and maleficent folks.
Such is our market-seems safe, but careful where you walk.
S&P 500 (SPY) Low volume and although the closing price is just beneath the old high 184.95 after rising above it intraday, not a clear reversal pattern to bank on that the top is in-not yet
Russell 2000 (IWM) 117.37 2014 high. Today’s low key to hold
Dow (DIA) Unconfirmed bullish phase with today’s high good resistance to clear
Nasdaq (QQQ) Looks good-like a leader should
XLF (Financials) Back to an unconfirmed bullish phase and has to stay there
SMH (Semiconductors) 43.00 a support level nearby to hold
IYT (Transportation) confirmed bullish phase but still has an overhead gap to fill
IBB (Biotechnology) The Mighty Thor
XRT (Retail) Longer it sits over the 200 DMA the better
IYR (Real Estate) Some economic stats this week which could move this around
XHB (Homebuilders) 33.38 is the 2014 high
GLD Hard to sit with if you’re first getting in up here but does look strong
USO (US Oil Fund) Hasn’t been over 37.50 since October 2013-finding that area resistance now
OIH (Oil Services) 48.00 cleared and held-look for support now at that point
XLE (Energy) 88.54 the 2014 high
XOP (Oil and Gas Exploration) Overbought with a great move up today
TBT (Ultrashort Lehman 20+ Year Treasuries) Back over 72.05 this can move up a lot higher
UUP (Dollar Bull) 21.60 an area to watch
EWG (Germany) 31.93 the 2013 high
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