October 22, 2012
Mish's Daily
By Mish Schneider
Was it the talk of the FED doing even a bigger injection into QE3, the dull test of October lows in S&P 500 that could not create a panic, AAPL turning around or the long-term market internals which indicate that SPY is neutral to bullish the reason the market turned from down 90.00 to up 2.38 in the last 20 minutes of trading? Each sector tells its own story-
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Russell 2000 (IWM) Odds favor that the weak warning phase means a further rally with the attraction to retest the 50 DMA.
Dow (DIA) The 50 DMA close-133.40, which also matches Monday's high
ETFs:
GLD Looks like it bottomed on Friday followed by an inside day Monday.
XLF (Financials) Wrote that this could be forming a double top or be a great buy opportunity around 16.00 if held. Tuesday should be more confirming which way, especially if this takes out 16.20
SMH (Semiconductors) A return over Monday's high after an inside day, compelling
XRT (Retail) 62.50 the 50 DMA and pivotal area.
IYR (Real Estate) confirmed warning phase but held the 10 DMA and over 64.90 could see new life
USO (US Oil Fund) 32.52 October low
XLE (Energy) Tested and held the 50 DMA. Could get going again over 74.15
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT broke the 200 DMA which means defending the rates at these lows proving to be tougher and tougher
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