October 2, 2013
Mish's Daily
By Mish Schneider
Looking at the market with a glass half full, the small caps or Russell 2000 had an inside day after making new 2013 highs Tuesday, NASDAQ made new highs closing marginally beneath them, the S&P 500 confirmed back to a bullish phase. Looking at the market with a glass half empty, the Dow closed down remaining in a warning phase. Concerning the sectors and groups, Real Estate resumed its recovery phase, Financials continue to lag, oil made a comeback along with the Exploration and Services groups (OIH, XOP), Retail closed green, while Transportation had an inside day. So, if I squint, it seems to me that the market is more banked on a government resolution than not-most likely before the week lets out.
S&P 500 (SPY) Over Tuesdays high will be a good sign and a break of the 50 DMA now, not so much
Russell 2000 (IWM) Inside day near the highs
Dow (DIA) hard to get too excited if one looks here-best place to look for short opportunities if the market weakens
Nasdaq (QQQ) Has to stay strong for the others!
ETFs:
XLF (Financials) Still under the 50 DMA which remains troubling as a possible double top from July and September still in play
SMH (Semiconductors) Maybe through 40.40 it will get some momentum back
XRT (Retail) 83.24 is the 2013 high to clear
IYT (Transportation) This will look better over 119.45
IBB (Biotechnology) Inside day
IYR (Real Estate) confirmed recovery phase-and an inside day
GLD Keep reading how bullish some are here-see no signs to be though unless it clears 130.00 Subscribers: Filled gap from Tuesday’s opening, which means watching for a short opportunity if it rolls over
USO (US Oil Fund)Through 37.65 expect more upside
OIH (Oil Services)Came back nicely putting this back on the radar
XOP (Oil and Gas Exploration) Didn’t disappoint
TBT (Ultrashort Lehman 20+ Year Treasuries) Through 76.12 expect to see rates rise a bit and talk of taper begin
VXX Subscribers: 14.96 the 50 DMA
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