July 21, 2014
Mish's Daily
By Mish Schneider
Hunter S. Thompson
Perhaps the market overdosed on Ritalin this weekend since the focus during Monday’s tight range with 3 out of the 4 indices putting in inside days (when the range of the day trades within the range of the day prior) and with the S&P 500 posting a rare 2 inside days, seems uncanny!
Jokes aside and examining my favorite indicators, here’s how we sit heading into Tuesday, bucket loads full of earnings and some key economic numbers on tap.
The Russell 2000s held the 200 DMA but could not cross the 50 DMA confirming the warning phase with an inside day. Definitely a place to watch for range break and next direction. Semiconductors were stronger, clearing the 10 DMA and 50.55 swing area. Now, they need to clear 50.86. The 20 year long treasury bonds, took out the April 2013 high and closed near the intraday low. If they gap lower, perception will be better. Otherwise, they continue to spell warning.
S&P 500 (SPY) 2Inside days-follow the range break as high percentage trade
Russell 2000 (IWM) Confirmed Warning Phase. Inside day wedged between the 50 and 200 DMAs.
Dow (DIA) Held the fast moving average
Nasdaq (QQQ) 96.30 high from last Wednesdaywith an inside day to start this week
XLF (Financials) 2 inside days-tomorrow should be fun
KRE (Regional Banks) 39.25 is what has to clear now
SMH (Semiconductors) Over the fast moving average
IYT (Transportation) 2 Inside days here too
IBB (Biotechnology) Confirmed phase change to bullish if holds 246.35
XRT (Retail) Inside day and confirmed warning phase
IYR (Real Estate) Inside day
GLD island top that has not been negated.
USO (US Oil Fund) Unconfirmed bullish phase
TAN (Guggenheim Solar Energy) Confirmed return to bullish phase
TBT (Ultrashort Lehman 20+ Year Treasuries) Of course eyes here
UUP (Dollar Bull) 21.52 the 200 DMA to clear
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