March 9, 2012
Mish's Daily
By Mish Schneider
Well, well, well, Welcome to Scenario 3! The one where the S&P 500 (SPY) gaps higher and closes higher leaving a potential bottom on the recent correction, as well as closing above the fast moving average.
Note: I am taking off Friday through Monday, so the next daily will be out late Monday afternoon.
S&P 500 (SPY) Last week’s high is the obvious point to watch for along with a hold of 136 to keep the gap in place
NASDAQ (QQQ)Wow-Got Scenario 1 yesterday and Scenario 3 today. It just proves that one should be aware of the phase and most importantly have a plan in place that is both flexible and viable.
Russell 2000 (IWM) The sobering index as this still needs to return over 81.00, the point it failed from last week. If it cannot, part of the plan for long positions should be trailing stops and profit targets
ETFs:
GLD Nice follow through on the bounce off of the 200 DMA.
XLF (Financials) A second weekly close over 14.71 the confirmation of a reversal of the 5 year downtrend
IBB (Biotechnology) After the inside day, another great lesson in following the way the range breaks
SMH (Semiconductors) The one that tried harder yesterday, today ended with a DOJI.
IYT (Transportation) Remains in a weak warning phase until it clears or fails from the 50 DMA.
IYR (Real Estate) Tomorrow should be decisive whichever way today’s range breaks.
USO (United States Oil Fund) Watching to see what happens at 41.05, but like any ETF that did not gap higher, these are the most suspect and ones to watch for signs of weakness.
TBT (Ultrashort Lehman 20+ Year Treasuries) Long again and a close over 19.37 will keep us that way.
Every day you'll be prepared to trade with:
