April 10, 2013
Mish's Daily
By Mish Schneider
Whereas the Dow took out the recent highs to close on new highs, the S&P 500 had its highest close on April 2nd, so although it crossed that level on an intraday basis, it failed to close on new highs. Furthermore, the Russell 2000 closed down on the day, wedged between two moving averages-the fast and the 50 DMA. Apparently, the small caps even with its great recovery from Friday’s big gap lower is a factor with the phase confirmed bullish, the rotation out of small caps into big industrial stocks continues. NASDAQ confirmed its bullish phase and had a good day, but remains below recent resistance. The divergence in the indexes continues to plague many trend traders; however, the daily opportunities in the various sectors and groups makes for some exciting day to short term swing trading opportunities. And, if one steps back, the phases are all bullish so even with divergence, the market is sound.
FSLR rose 45% after yesterday’s 2.27% gain. MMM Premium Subscribers entered on 04/05 at 26.20 for a gain of over 47% in just 3 days!!
S&P 500 (SPY) Another push above 157 barring an ugly turn of events, should take this higher. 157.52 is the 2007 high. A drop under today’s low will start to look like toppy action.
Russell 2000 (IWM) The 50 DMA is 91.94 and the fast moving average is 93.00-and she sits between the two.
Dow (DIA) All-time highs yet again
NASDAQ 100 (QQQ) Like to see a second close above 69.00. Confirmed its bullish phase
ETFs:
GLD After the slingshot low and yesterday’s inside day if you followed the range break, there was money there. The 50 DMA is overhead as resistance
XLF (Financials) Needs to take out the 2013 high (18.48) and hold 18.10
SMH (Semiconductors) The day this gets over 36.17-look out above!
XRT (Retail) Possible slingshot high after taking out the 70.81 double tops. In other words, a possible key reversal and not in a good way. Needs confirmation
IYT (Transportation) A mirror of the IWM-wedged between the fast and the 50 DMAs
IYR (Real Estate) New highs the last 4 trading days. Now extended, but keeps helping us get long other instruments with more confidence
USO (US Oil Fund) Back over the 200 DMA.
XLE (Energy) Unconfirmed phase change back to bullish
TBT (Ultrashort Lehman 20+ Year Treasuries) Great move off of Friday’s low but starting to think that if this does not gap higher, the possibility of a correction to short (or buy TLT’s) is a possibility.
XOP (Oil and Gas Exploration) Confirmed return to the bullish phase
XHB (Homebuilders) Confirmed return to a bullish phase even with its red day.
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