January 24, 2012
Mish's Daily
By Mish Schneider
The market held its breath today. That gave it time to digest and work off some overbought conditions while all sat in wait for AAPL earnings. Most noteworthy was my favorite index Russells 2000 (IWM). Beautiful bullish engulfing pattern candle with an Accumulation day in volume. Over Monday's high, looks good to the August high 81.00.
FOMC still in session.
NASDQ (QQQ) 59.40 key support with upside move possible to 64.00.
ETFs:
GLD All I have wanted to do since 2012 began was short GLD. If today continued the up move I would have changed that bias. Instead, it gapped lower and did very little.
XRT(Retail) Broke from the channel last week and up 4 ATRs (4 times the average true range) since.
XLF (Financials) Reminds of what SPY did when it first cleared the 200 DMA-not much at first-but certainly not a sign of weakness.
IBB (Biotechnology) The 10 DMA and today's low important to hold.
XLE (Energy) Like to see it gain some momentum above 72.15. Then lots of room.
TBT(Ultrashort 20+ Year Treasury Bonds) Thought it might be done, but now has held the gap higher from Monday. Could see 20.15 the December high next
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