Stock Market Pop (Poop) Quiz

November 9, 2011

Mish's Daily

By Mish Schneider

Ahead of the curve: MMM Premium to Subscribers 8 Nov via TweetDeck: Bought 30.00 Jan puts in SLV for 1.32 to test the market. Closed today 1.59. Percentage gain 20%.

A Pop (Poop) Quiz:

1. Was today irreparable damage with the bear candle close on good volume?

2. Did any of the indexes change phases?

3. Was support at adaptive moving averages, which are all still positively sloped, regarded?

4. Did the leading stocks (AAPL GOOG IBM) outperform?

Answers: 1. Maybe 2. No 3. Yes 4. Yes

SPY: I wouldn’t mind a test of the 50 DMA at 120.00 with the Relative Strength Indexes (RSI) looking oversold. But, first it must break 122.25 and stay below 124.50.

IWM: Looks like Midcaps are winning the tug of war with QQQ so far. But the game is not over yet. The 50 DMA 69.75. Back over 73.90 encouraging.

QQQ: A weekly close under 55.65 would take out its muscle. But for now, the 200 DMA at 56.40 especially on a weekly close is the nearest area to watch.

ETFs:

SLV (Silver) 32.80 next area to watch for break to see 31.50. Otherwise, until it closes above 34.45, bear phase intact.

XRT (Retail) 50.55 the 200 DMA. One I would put at top of the list if gets there and registers oversold on the RSI.

XLK (Technology) 25.50 the 200 DMA. Yesterday, all its troubles seemed so far away, now it looks as though they’re here to stay -oh, do we believe in yesterday?

XLF (Financials) 12.64 the 50 DMA and looking like the first one to likely get there.

IBB (Biotechnology) In hindsight, this has lagged for some time now and perhaps an early warning that was hard to see. First one that will get oversold, but under the 50 DMA (95.50) with a negative slope anticipate would think more of a relief rally than a reversal of trend.

OIH (Oil Service Holders) Exodus. Looking to see what happens at the 50 DMA 121.25.

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