December 18, 2013
Mish's Daily
By Mish Schneider
Taper: To make smaller gradually. Love ‘em or hate ‘em, the FED followed the Webster to the letter on this one. The main concerns were not “if” the Fed would pull back; rather how much and how fast.
Now we know-10 billion to start, trimming most likely each month into 2014-gradual rise in rates, dependent on consistent positive numbers from the economic data.
The Dow closes on new highs, the Financials darn close along with Semiconductors (can never lose hope there). Real Estate held in the clutch along with Homebuilders and Retail. Keep eyes on those small caps-they got some catching up to do if this was more than a one day wonder.
The US dollar (UUP) through 21.65, will take a toll on some interest rate sensitive groups, but the big takeaway today is leave the media dealt fear at the door and find yourself someone trustworthy to follow in 2014. I can suggest someone if you are stuck.
Stock market is where it’s at!
S&P 500 (SPY) Huge Accumulation day and brushing against the 2013 highs. Now that’s what Santa Claus looks like
Russell 2000 (IWM) The sobering index as it is far from 2013 highs so watch here carefully
Dow (DIA) New highs-good for the headlines!
Nasdaq (QQQ) 86.53 has to clear here
XLF (Financials) 21.64 the 2013 high-the 2 accumulation days in volume noted over the weekend and after Monday’s session in hindsight, an interesting tell
SMH (Semiconductors) 42.00 the highs right there
XRT (Retail) Talk about your clutch hold and run from the 50 DMA!
IYT (Transportation) Not as pretty here but held the 50 DMA which tells us that fading a bullish phase can hurt-a lot!
IBB (Biotechnology) Over 220 would help here
IYR (Real Estate) Started to look like a bottom on Tuesday-better now, but still, 64.00 would be good to clear
XHB (Homebuilders) Nice move off the base.
GLD Broke 118-not pretty for the metal. Need another day to seal its fate one way or another
USO (US Oil Fund) 34.50 important support with 35.25 resistance to clear
OIH (Oil Services) Came back, yes, but still in warning
XLE (Energy) Now that’s impressive-blasted back over the 50 DMA-eyes here
XOP (Oil and Gas Exploration) Came back, but still in warning
EWW (Mexico) 67.45 is pivotal-like it above
TBT (Ultrashort Lehman 20+ Year Treasuries) Considering what the market did, fair to say that the rates will rise gently based on today’s action here
UUP (Dollar Bull) 21.65 and over-stronger dollar seems in the works
IFN (India Fund) Convincing move back over the 200 DMA
EWG (Germany) No more island top. 30.69 the 2013 high
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