September 12, 2012
Mish's Daily
By Mish Schneider
How can one argue with new highs in S&P 500 even on a slow, low volume doji day? How can one argue with NASDAQ holding the fast moving average? Although Russell 2000 did not clear 2012 high, it is really, really close. Even the most experienced traders have to remember that a dull market does not mean the end of days. FED speak tomorrow-that could bring some excitement. It was a year ago they announced Operation Twist. It's been a year of QE3 rumors. Market is on 4-year highs. Not sure why FED would ease-but then again, my job is to trade what I see. Been in a bull trend. Until that changes, no reason to stop buying corrections.
S&P 500 (SPY) Always have to be prepared for anything, but looks pretty explosive from here.
Russell 2000 (IWM) Suspect this could gap above 84.66, the 2012 high from March. Question will be where it closes
Dow (DIA) Not overbought at all.
NASDAQ 100 (QQQ) See this as the best opportunity right now if holds the fast moving average-been correcting with AAPL and has lots of room.
ETFs:
GLD As long as 167.23 holds, the gap low, this recent consolidation could be another jumping off point
XLF (Financials) 16.01 2012 high
SMH (Semiconductors) Closed shy of the 200 DMA. Probably needs to clear 33 now or could see 32.25 the 50 DMA
XRT (Retail) Strong like bull
IYT (Transportation) confirmed phase change back to accumulation.
USO (US Oil Fund) Under 35.00 and over 36.70 breaks the recent range one way or another
OIH (Oil Services) Interesting that the monthly trend is still negative with overhead resistance at 44.
XLE (Energy) 76.50 the 2012 high
TBT (Ultrashort Lehman 20+ Year Treasuries) Filled the gap ad left a new one. From island top to island bottom if confirms.
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