Winds Of Freedom

November 10, 2014

Mish's Daily

By Mish Schneider

The Story of The Navajo Code Talkers of WWII Margaret T. Bixler

The Russell 2000s and consolidation go together like gin and tonic, which by the way, if you were so inclined, the slow Monday market gave liquid lunchers lots of time to imbibe. Now day 7 of a trading range between 117.37 high and 115.28 low, the patient should be rewarded once that range breaks up or down.

As for the rest, all of the other 3 indices finished on new highs making the small caps even more important, since it seems big brothers will not blast off further until the wee one goes from a crawl to at least a walk.

The initial stereotypical market perceptions of the Republican win last week and the impact it had on certain sectors and groups waned a bit-Biotechnology and Healthcare had a good day, Oil and Gas not so much. Then there is Solar Energy-although Solar City (SCTY) firmed, the ETF TAN remains under pressure and needs, well, some wind behind it.

Likely that Tuesday, Veteran’s Day, will be slow as well considering the Federal holiday with banks closed. Lots of retailers report earnings this week, right when holiday shopping starts gearing up-I have already received several Veteran’s Day sale flyers in the mail with red and green the dominant border color.

I’d like to conclude with a loving shout out to Teddy Draper Sr. He is 93 years young and a living legend. Raised in the traditional Navajo lifestyle, at 17 he went off to fight in the Pacific Theater during WWII, trained as a Code Talker. Teddy went to Hiroshima and Nagasaki to radio back what had happened at Ground Zero. He was wounded in Iwa Jima, but rather than return to the states, fought on for another 26 days. The Navajo Code Talkers could not speak of their service for 50 years, not even to their families. We have had the honor of meeting him in Chinle, Arizona and now calling his son, Teddy Jr, a Veteran of the Vietnam War, our friend.

S&P 500 (SPY) New high close-I like the strong and silent type! Under 202.80 now will be a bit troublesome

Russell 2000 (IWM) Over 117.80 brings it to the Promised Land and has to hold 115.20

Dow (DIA) Overbought but no topping patterns yet

Nasdaq (QQQ) Needs to clear 102.03 on a closing basis and hold 100.60

XLF (Financials) New highs-not surprising

KRE (Regional Banks) Quiet but good day-40.43 pivotal

SMH (Semiconductors) Semis are not needed at this party, but, still like to see them clear 52.00

IYT (Transportation) Truckin onto new highs

IBB (Biotechnology) Good day if holds 293 level now

XRT (Retail) Inside day-also not surprising

IYR (Real Estate) Came back well with 75.00 big support

ITB (US Home Construction) If this gap up holds, can see a lot more to the upside