Why Are Two Haramis in a Row A Holiday Gift?

December 7, 2015

Mish's Daily

By Mish Schneider

To follow up on TAN the ETF for Solar Energy. Last week saw its volume exploding to the highest weekly volume since June of 2014.

Monday, huge volume continued with another day of near 5 times the average daily.

Although the price of TAN was under some pressure with the rest of the market, it is clear that interest is waxing. TAN traded a second inside day in a row (Harami in Japanese candles language). That means both Friday and Monday’s trading range were within the range of Thursday. As this week continues, I will continue to keep a very close watch.

As far as the rest of the market’s activity, Monday began proving that waiting patiently for confirmation on pretty much anything and everything is prudent.

Whatever one thinks today, expect that to be challenged and possibly completely altered tomorrow. Hello December.

And now we pay a visit to the Modern Family as for now, we see a conflagration at the sewage plant, similar to the one that the Griswold family watched in National Lampoon’s Christmas Vacation. They see lights.

The utterly senile Aunt Bethany from Russia (RSX) did indeed show up along with Uncle Eddie (USO-oil) to cause mayhem for the Family.

Furthermore, Cousin Yellen herself was quiet, but St. Louis Fed President James Bullard said "The negative surprises with respect to real GDP growth and inflation carried more weight during this period than the positive surprises on labor market performance."

This sent the interest rate ETF (TLTS) soaring.

Granddad’s Russell 2000s (IWM) touched down on the 50 DMA closing right in the neighborhood. A break would return it to a bear phase, but with lots of underlying support on the daily chart. Doubtful we will see anything lower than 112, I’m not counting him out just yet.

Granny Retail (XRT) traded a second inside day in a row as did TAN. 42.00 support keeps Granny’s double bottom alive. A move over 45.08 would perk her up.

2 ways to look at our Prodigal Son (KRE). A buy opportunity surfacing close to the major moving averages before blast-off (Fed still set on raising). Or, with the failure to clear 46.00, a disappointment to the family. I tend to think the former.

Semiconductors (SMH) held a pivotal area from last week at 56.15. It got close. Trannies (IYT)’s best chance is if it holds 141.12. Then, we could still make a case for a move over 146 at some point.

Finally, Big Bro Biotechnology (IBB) actually impressed me so close to a major breakdown. Like Granny, IBB has 2 inside days. Future is pretty clear-over 334 reprieve for all. Under 320, he will be looking for a blood transfusion.

The Modern Family celebrates all of the holidays this time of year. Therefore, what looks like sewage to some appears like holiday glow to them. With the 2 harami’s in several instruments, perhaps it will be a Japanese Candle glow.

S&P 500 (SPY) Inside day. The elusive 210 is what we all are looking at. That and if it can hold 206.60

Russell 2000 (IWM) Touched the 50 DMA and held

Dow (DIA) Inside day and narrow range. 175.68 the 200 DMA and of course we love it over 180

Nasdaq (QQQ) Inside day here too. Held 114.28 the 10 DMA

XLF (Financials) 24.25 pivotal 24.97 high to clear. Inside day.

KRE (Regional Banks) Like this against 42.50 if you believe

SMH (Semiconductors) 56.15 pivotal and over 56.50 probably good

IBB (Biotechnology) 2 Inside days

XRT (Retail) 2 Inside days.

IYR (Real Estate) Inside day. Needs to clear the 200 DMA at 75.01

ITB (US Home Construction) Inside day

GLD (Gold Trust) Held 102.50 level exactly. Makes it interesting