One Should Lie Empty, Open, Choiceless As A Beach

November 25, 2014

Mish's Daily

By Mish Schneider

Anne Morrow Lindbergh

The time has come for me to take a rest. Strategically planned for the Thanksgiving holiday and the week thereafter, I will return December 8th, refreshed and prepared to see out 2014 while readying for the trades setting up for 2015.

Since we never like to leave our devoted readers and subscribers stranded, you will continue to receive a daily email written by Geoff Bysshe, President of Marketgauge beginning this Sunday, November 30th.

As for the market, my parting recommendation is to follow the sector and group rotations. Seems like the metals and miners might be ripe for a move up and depending upon what OPEC does, watch oil and gas as well. Solar will be impacted by the OPEC decision mainly because cheap gas and oil does not create urgency for solar energy right away. (Remember, perspective is key!)

Black Friday and Cyber Monday could boost retail, technology and transportation prices further; however, I would take that opportunity to lock in profits in those equities or ETFs rather than look for new longs. Concerning rotation, the Regional Banks ETF (KRE) has great potential.

Interest rates continue to send the message that in spite of the termination of Quantitative Easing in the US, the baton to other countries keeping the juice on gives a low rates everywhere legs.

Think of Keith and me, simultaneously opening up umbrellas on the beach and the smaller ones in our cocktails, while you watch to see if the small caps (IWM) tackle the 2014 high 120.97, a respectable probability if they hold the 117.80 area.

Have a wonderful holiday and week ahead! Thanks so much and bye for now!

S&P 500 (SPY) Digestion near the highs

Russell 2000 (IWM) New multi month high close

Dow (DIA) Digestion near the highs

Nasdaq (QQQ) Yet another new high close although AAPL looks toppy again if confirms

XLF (Financials) Digestion

KRE (Regional Banks) See this as a big winner in the months to come

SMH (Semiconductors) New highs but a bit tired looking

IYT (Transportation) New high close

IBB (Biotechnology) 294-302.98 new range to break one way or another

XRT (Retail) Intraday went to new highs then closed marginally low-supports the sector/rotation theory

IYR (Real Estate) Holding 76 and liking the rates