November 12, 2013
Mish's Daily
By Mish Schneider
Semiconductors, Transportation, Retail and Homebuilders all did well during Tuesday’s session. The indices drifted and held critical lows. The FED taper talk had an initial impact until the market seemingly said, “Never mind.” The pockets of weakness are in the commodities especially in oil, gold and silver, which are not so bad for this consumer, who loves jewelry and gas guzzling cars. We came into Tuesday’s session looking for volume. Instead, we got more divergence with the S&P 500 holding the fast moving average. The Dow holding the fast moving average yet retreating once again from the top of a channel. The Russell 2000 clearing the fast moving average marginally and NASDAQ not quite there. What was stronger is weaker, what is weaker is stronger-yet all remain in bullish phases-the rotation is noteworthy (watch which index leads up or down on Wednesday), but not majorly significant.
S&P 500 (SPY) Last Thursday’s high still important 177.64. Tuesday low important as well.
Russell 2000 (IWM) Last Thursday’s high is important 109.81, and Tuesday this closed with an inside day
Dow (DIA) Retreated from the channel which can also be a good thing since if it clears, can do so now with more muscle.
Nasdaq (QQQ) 82.70 real big area for this to clear and hold above
XLF (Financials) Weaker today but no real damage unless it breaks to the 50 DMA
SMH (Semiconductors) More like the semis I have come to know and love. Has hurdles, but today was what I was looking for to keep the forecast strong
XRT (Retail) Holding up the market it seems
IYT (Transportation) Gapped and cleared the fast moving average-a good place to be
IBB (Biotechnology) A push above the 50 DMA will help this group a lot. Otherwise, a favorite area for a short
IYR (Real Estate) Oversold and very cheap.
XHB (Homebuilders) Unconfirmed phase change to bullish. Subscribers: If not already long, looking a lot better now
GLD Now oversold
XLE (Energy) 85.00 key to hold
XOP (Oil and Gas Exploration) Closed under the 50 DMA
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