June 10, 2024
Mish's Daily
By Mish Schneider
A Gordian Knot comes from Greece during Alexander the Great’s march.
It has become a metaphor for a problem solvable only by bold action.
Every investor is waiting for the next stat and the next stat.
Each one is perceived as the key to what the Fed will do next.
And that the market action/reaction will be bold.
Will the market head to new highs as we are seeing in certain areas?
Or will the weaker sectors/indexes drag down the mighty?
-
We already know what a Fed long pause looks like.
-
Until something unties the knot, the market continues to cautiously hold up on low volume, wonky breadth with a huge divergence between small caps and growth stocks.
And then there are the commodities.
This week I did a segment for stockpick.app on commodities and the Gordian Knot.
On Thursday, I will do a presentation for the Money Show on how to invest in the current environment which could resolve as:
Expansion
Stagflation
Recession.
And right now, I am not sure anyone knows for sure how the knot unties and who or what rules as a result.
What I do know is this-the ratio between commodities and equities remains unsustainably low, which means opportunities are emerging.
Educational purposes only, not official trading advice.
For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
-
Traders World Fintech Awards
-
Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth
Grow Your Wealth Today and Plant Your Money Tree!
"I grew my money tree and so can you!"- Mish Schneider
-
Mish in the Media-Want to see more? All clips here
Business First AM Mish covers why big tobacco is circling cannabis regulation 06-05-24
StockChartsTV Mish walks you through the chance of a bigger correction and/or summer rally and what to look for 06-03-24
Schwab Network with Nicole Petallides Mish and Nicole discuss areas to watch after a fabulous first 1/2 of the year. 05-31-24
Making Money with Charles Payne Mish talks with Charles on warning signs and yet picks to watch 05-28-24
Real Vision The Daily Briefing Without commercials 05-24-24
Coming Up:
June 12 Mario Nawfal Spaces 8 AM ET and 1:30 PM ET
June 21 Schwab
June 24 CNA Asia
July 2 Yahoo Finance
July Date TBD Wealth 365
Weekly: Business First AM, stockpick.app
ETF Summary
S&P 500 (SPY) New all-time high
Russell 2000 (IWM) 210.80 resistance 200 support with a historical wide ratio between this and NASDAQ
Dow (DIA) 40k resistance
Nasdaq (QQQ) New all-time high
Regional banks (KRE) Watching the range 45-50
Semiconductors (SMH) 450 major support and another new all-time high
Transportation (IYT) 63.80 area now important support with 66-67 the area to clear for health
Biotechnology (IBB) 135 support 140 resistance-big eyes here this week
Retail (XRT) 75-80 trading range to break
iShares iBoxx Hi Yd Cor Bond ETF (HYG) Ended the week on critical support 76.85 area-so watch carefully this coming week
Every day you'll be prepared to trade with:
