July 13, 2014
Mish's Daily
By Mish Schneider
With the end of last week and for consistency’s sake, I’d like to review 3 indicators.
Semiconductors-they held the 10 DMA but failed to close above 50.53 which was the ultimate game changer from the topping pattern put in place last week-verdict-INDECISIVE with slightly negative bias.
The Russell 2000s-Inside day and held the 50 DMA but failed to take out 116-verdict- INDECISIVE with negative bias.
The 20 Year Long Bonds (TLTs)-Held the 50 DMA, closed green yet not above 113.82 resistance-verdict-POSITIVE bias for rates.
Looking ahead, a few weeks ago I had Solars, China and Regional Banks on my mind. Now, all are very much back in focus with China in the lead, followed by Solars and ending with Regional Banks. Disclaimer-We have other instruments on our focus list, but for consistency’s sake once again-narrowing it down for you.
FXI-Golden cross last week. Good correction followed by rally. One more push should do it for follow through. TAN-Held the major moving averages. Outperformed the market last Friday. Bottoming formation needs to confirm. KRE-Held the major moving averages. Underperformed on Friday, however, a move back over 40.00 is encouraging.
How the emerging markets versus the US Markets behave relative to one another will be interesting. NASDAQ has to keep up the leadership. And of course, whether the Dow gets back over 17,000 not to mention how the 3 “tells” do will also be huge clues for this week’s action and who wins out-after all, the bulls and the bears are kind of neck and neck.
If you want to know more about how we find picks, be sure to download our free e-book and watch the following video. Furthermore, please attend one of our live webinars by yours truly this coming week. www.marketgauge.com/swing/report/?aff=dv&refsrc2=marketminute
S&P 500 (SPY) Inside day to add to the indecision plus has to clear 197 and continue to hold 196.13
Russell 2000 (IWM) Inside day. Held the 50 DMA, filled the gap to 116.05 on Thursday-range to watch
Dow (DIA) Inside day. On the 10 DMA. If holds, looks good
Nasdaq (QQQ) Closed above key resistance and is voted the favorite for showing the market the way on Monday
XLF (Financials ) Yet another inside day on the 50 DMA
IYT (Transportation) Again, over recent highs, close your eyes!
XRT (Retail) Definitely a candidate for concern
ITB (US Home Construction) Not pretty and more concern
GLD Still holding the breakaway gap also not good for equities
XOP (Oil and Gas Exploration) Oversold and on the 50 DMA
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