December 27, 2012
Mish's Daily
By Mish Schneider
I have a neck brace on from market whiplash! My phase indicator is like a rainbow of bullish, warning and bear (green, yellow and red). So, if you feel like you're at a busy intersection and not sure if the light is going to turn green for you to cross safely or stay red, keeping you on the sidewalk-welcome to the grand finale!
S&P 500 (SPY) Long wicked candle after it bounced off of the lows more than a bit shy of the 200 DMA, but still closed with an unconfirmed warning phase.
Russell 2000 (IWM) Ditto to SPY only with one big difference-holding the bullish phase. If crosses over 83.60 looks a lot better
Dow (DIA) Broke the 200 DMA but closed above, again with a long wicked candle. Similarly to SPY, under the 50 DMA for an unconfirmed phase change to warning.
NASDAQ 100 (QQQ Filled the gap to 64.02 and then some, but came back to close above Wednesday's low, however, still red. AAPL managed to defend recent lows and close green. 520 is big overhead resistance ad if trading with the phase, one still has to look for a short opportunity
ETFs:
GLD Tried, but closed just shy of the 200 DMA
XLF (Financials) Still in the best shape. But, until it crosses 16.44 aside
SMH (Semiconductors) Held the 50 DMA for now. Needs some work though to restore confidence
XRT (Retail) Took out the 200 DMA and closed above. Would be exciting, but the volume was not that big.
IYT (Transportation) Still a favorite group but seems more of a dip is in store for the buy opportunity
IYR (Real Estate) Also in decent shape as its still in a bull phase. Over 64.88 will be compelling
XLE (Energy) Broke and closed above 71.00 a key support level. If holds, has to clear 71.50.
TBT (Ultrashort Lehman 20+ Year Treasuries) 61.85 pivotal.
Every day you'll be prepared to trade with:
