December 18, 2012
Mish's Daily
By Mish Schneider
Looking to follow strength rather than buying weakness was the right advice/strategy as the week begins. We didn't quite see an accumulation in volume in S&P 500, but price action is significant in that it begins our acceleration from the 50 DMA and firms the bullish phase. NASDAQ did its best to retrace to the 200 DMA on good, not amazing, volume. Follow through would be great confirmation and a relief to many remaining sidelined investors as this remains in its bear phase.
S&P 500 (SPY) Looking a lot more like 2012 highs are in reach provided it holds 142.90 level
Russell 2000 (IWM) Friday's inside day was a gift once the highs were taken out on early strength. 86.00 looks in the cards
Dow (DIA) 137 likely provided Monday low holds
NASDAQ 100 (QQQ) AAPL is the story here. Dropped to a Fibonacci number at 501.25 and ran. If this turns out to be a key reversal, follow QQQ over 65.50 the 200 DMA
ETFs:
GLD This is so not the happening place right now
XLF (Financials) Opened up above 16.08 and off she went. 16.44 2012 high-can almost taste it!
IBB (Biotechnology) Could not take out Friday high, now an area to watch.
SMH (Semiconductors) Like to see it clear away from the 200 DMA now
XRT (Retail) 63.40 key resistance after it did what it had to do to stay in the game
IYT (Transportation) Inside day
IYR (Real Estate) Jumped off the 50 DMA and underperformed. That means watch to see if 64.40 clears or weakness comes back for short opportunities
GDX (Market Vectors Gold Miners) Inside day
USO (US Oil Fund) 32.11 has to clear or still vulnerable
TBT (Ultrashort Lehman 20+ Year Treasuries) Nice move back to recovery although unconfirmed unless 50 DMA holds
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