January 12, 2014
Mish's Daily
By Mish Schneider
Quote: Hunter S. Thompson
Way to go out on a high note! The Friday U-turn I wrote about happened, but not in just a few instruments; rather, in many.
The fledgling Country ETFs turned around nicely which means with any follow through this week, some great trading opportunities. The Oil, Metals, Homebuilders and Real Estate sectors rebounded.
The USDA report gave CORN (ETF) a boost and Biotechnology continued its rocket launch to new high territory.
The Indices, though, did not wow with the Dow closing down while the others ended only marginally higher. Retail closed weak. Financials experienced profit taking ahead of the earnings reports of many bank stocks coming up-several before the market opens this Tuesday.
Therefore, this year is setting up to be all about being in the right place at the right time-and given real concerns in the labor market, anticipation of a dovish FED maintaining low interest rates.
With this trader still somewhat incredulous, that could all be so last week-time will tell.
S&P 500 (SPY) Closed over 184 which means has to stay above there for a chance to run up more. Otherwise, Friday low has to hold
Russell 2000 (IWM) Like SPY, here 115 is the number to hold above for more upside and 114 the low to hold to keep things in check
Dow (DIA) Inside day. Holding the runaway gap from 12/26. Under 163.26 that’s the end of that while over 165 a lot better
Nasdaq (QQQ) Sideways main impression here
XLF (Financials) Inside day while this rests ahead of earnings
SMH (Semiconductors) Inside day and still not showing any real muscle
IYT (Transportation) New highs here too-hope this sector employs folks who need jobs
IBB (Biotechnology) Pharmas rule the world
XRT (Retail) Confirmed warning phase-why I cannot jump up and down for joy just yet at Friday’s strength
IYR (Real Estate) Unconfirmed recovery phase showing the basing action in play from last week
XHB (Homebuilders) U-turned Friday but still has resistance to clear over 33.00
GLD Contrary to everything logical, bottoming taking place with the 50 DMA right there
USO (US Oil Fund) Although it recovered from lows, not with any real oomph
OIH (Oil Services) U-turn-now has to hold 46.80
XLE (Energy) Inside day on the 50 DMA-should be heading for some decisive trading this week-below or above that 50 DMA
XOP (Oil and Gas Exploration) Inside day. Still in a warning phase
TBT (Ultrashort Lehman 20+ Year Treasuries) Taper? What taper?
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