April 16, 2012
Mish's Daily
By Mish Schneider
What did Monday illustrate? 1: The sectors that are best to watch to assess where we go from here are Retail, Real Estate, Financials and Transportation. All closed green and outperformed their corresponding indexes (S&P 500, NASDAQ, Russell 200, DIA) 2: NASDAQ which signaled with double tops and a bear flag, now tested and held the 50 DMA which maintains a positive slope not to mention a bull phase. 3: If DIA can clear today's high, it will negate a possible bear flag formation and although the index is teeny, a decent reason to at least not go gangbusters short. 4: AAPL is oversold on the daily RSI and holding a gap to 568.
GLD Held the fast moving average but does look like the daily moving averages are headed to a death cross. 155 has been the bottom of the recent trading range.
XLF (Financials) Inside day. 15.12 is the 50 DMA ending the week and it did indeed hold with a positive slope. So again, anything is possible-a failure back to looking at 14.50 or a hold, move over Monday's high and another run.
IBB (Biotechnology) February and March low was 115.64 and 115.83 respectively.
SMH (Semiconductors) Since it failed to close above the 50 DMA, the low tick last week, 33.82 could be in the cards.
XRT (Retail) Ever so important here. Over today's high, look for a rally. But, since has the gap lower in place, be ready for anything, including a possible test of 58.50
IYT (Transportation) Good performance, but it closed under the 50 DMA and right at Friday's high so can make a case for either direction.
OIH (Oil Services) 38.30 last week low with an oversold weekly RSI
XLE (Energy) Oversold weekly RSI.
Every day you'll be prepared to trade with:
