September 19, 2013
Mish's Daily
By Mish Schneider
If you stayed one step ahead during Thursday’s session, most likely you stood on the sidelines and watched the digestion at these levels. Except in NASDAQ, this digested while making new highs. That brings me comfort even though there are always many slices to the pie. One, there is the plaguing 2013 highs yet to be penetrated in both the retail and financials groups (The ETFs). Second, there is the small rise in rates as the TLTs closed shy of an improved phase. That could be conceived as a letdown after the FED announcement. Certainly makes it an area to keep very close eyes on as the week ends. The Dow and the small caps had inside days near the new highs established yesterday. Mixed bag and very interesting indeed!
S&P 500 (SPY) Made new highs by a couple of ticks and closed down ever so slightly. Wednesday’s low now important
Russell 2000 (IWM) Inside day and not overbought
Dow (DIA) 156.24 the old 2013 high holding with Thursday’s inside day. Good pivotal point
Nasdaq (QQQ) New high or shooting star? Another question in the drama of the first post-FED day.
ETFs:
XLF (Financials) Still has not gotten to the 2013 high from July-20.93
XRT (Retail) Also has to clear 2013 highs 83.24-and my bet as the best one to do it if market holds
IYT (Transportation) New highs-no more double bottom fears and another place to look for opportunities longer term.
IYR (Real Estate) confirmed phase change to recovery. Like to see some digestion against the 50 DMA now and then see if it can blast through the 200 DMA
XHB (Homebuilders) Not new 2013 highs yet
GLD130 back to pivotal
USO (US Oil Fund)Inside day and sell off but managed to confirm phase change to bullish
OIH (Oil Services)Inside day
XLE (Energy) Digestion day here
TBT (Ultrashort Lehman 20+ Year Treasuries)Inside day. TLTs Got right to the 50 DMA. 104 pivotal and above the 50 DMA might see more upside
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