August 14, 2013
Mish's Daily
By Mish Schneider
Rather than following the recent pattern of testing support in the morning and then grinding higher, the four major indexes found support in the morning and then spent the day chopping sideways. There are inside days in Nasdaq (QQQ), the Russell 2000 (IWM) and the S&P 500 (SPY). The Dow Jones Industrial Average (DIA) is the only index without an inside day, as it broke recent lows but closed above the gap from 7/10. It is very important to watch how the inside day ranges break in the three indexes that have them. Overall, the market is very mixed, compressed and ripe for a breakout. The choppiness we are experiencing requires you pick your positions carefully, go where the volume is and be precise with your entries.
S&P 500 (SPY) Inside day. Watch how the range breaks. Under the 10 DMA.
Russell 2000 (IWM) Inside day. Watch how the range breaks. Under the 10 DMA.
Dow (DIA) Broke recent lows and closed above the gap from 7/10. May test the 50 DMA
Nasdaq (QQQ) Inside day and holding the 10 DMA. Watch the range break.
ETFs:
XLF (Financials) Holding support and under the 10 DMA. Recently over the 80 monthly.
SMH (Semiconductors) Inside day with a close over the 50 DMA. Now in a confirmed bull phase.
XRT (Retail) Doji candle with a close over the channel. Back under the 10 DMA.
IYT (Transportation) Testing the 50 DMA.
IBB (Biotechnology) Watch for 194.54 to hold.
IYR (Real Estate) Watch for 64.00 to hold. If that breaks, this could test the June lows.
XHB (Homebuilders) Holding support and under resistance. Testing the 200 DMA.
GLDGood climb this morning and consolidated for the remainder of the day.
USO (US Oil Fund)Grinding higher. 38.12 is the next hurdle.
OIH (Oil Services)Closed under the 10 DMA, holding the 80 monthly.
XLE (Energy) Inside day. Sideways and choppy under the 10 DMA.
XOP (Oil and Gas Exploration) Inside day.
TBT (Ultrashort Lehman 20+ Year Treasuries) Holding yesterday’s gap and chopping sideways.
Every day you'll be prepared to trade with:
