February 11, 2015
Mish's Daily
By Mish Schneider
28 Days Later. In many circles, that is a complete cycle-ladies? It’s also the amount of time one spends in rehab typically. In the film, it was the day the zombies came to life (dead alive). Interestingly, it’s called a “Keith Number” introduced by Mike Keith in 1987 as a Fibonacci-like sequence.
On this Day 28 of the 6 month calendar range, NASDAQ confirmed the breakout. The S&P 500 almost did likewise staving off an apocalyptic event clearly abetted by some friends, the Semiconductors, Retail and Financials. However, in the final moments, SPY sold off from the highs to close marginally over 206.88 (The zombies stir).
As for the other 2 indices, Russell 2000s posted an inside day (when the trading range is within the trading range of the day prior), while the Dow tickled the January Calendar Range high but could not clear it.
The Russell 2000s is still a bit far from the January 6 month high (happens in the first 10 trading days of the new year) to celebrate the Fab Four all in attendance.
The volatility index firmed, which as I have mentioned since last week, continues to suggest warning even as the market climbs close to the breakout points.
Overall, market is really choppy. You know the conventional wisdom on how to kill a zombie? With an axe (makes no noise hence attracting others) and chop off its head. Start wielding!
S&P 500 (SPY) Over the Calendar Range so that has to be better. Could still a slow grind and not much in the way of fireworks given volatility index. Bullish Phase
Russell 2000 (IWM) Bullish Phase Inside day 120.56 January Calendar Range high with 118.30 now the important support to hold
Dow (DIA) Bullish Phase 179.23 the January Calendar Range high with 176.47 the support to hold
Nasdaq (QQQ) Confirmed Bullish Phase Now want to see 104 area hold with 103.10 the 50 DMA. Then, we can talk about November highs from 2014
XLF (Financials) Confirmed Bullish Phase 24.17 pivotal
SMH (Semiconductors) Confirmed Bullish Phase and took out the January Calendar Range High
IYT (Transportation) Marginally cleared the 50 DMA
IBB (Biotechnology) Wild day with a test of R2 and S1. Now, all about holding the 50 DMA
XRT (Retail) Good group and tested the Calendar Range high or 96.85 but closed shy of it
ITB (US Home Construction) Matched the multi-year highs
GLD (Gold Trust) Broke the 50 DMA sitting at the 100 DMA or 117
USO (US Oil Fund) 18.50 pivotal
XLE (Energy) If you’re going to go anywhere in the oil, energy group, this had an inside day over the 50 DMA
TAN (Guggenheim Solar Energy) My semis of 2015!
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs Held the 50 DMA and could bounce more if clears 130.50, otherwise, will break for the first time since September 2014
UUP (Dollar Bull) Consolidating over 25.00
RSX (Russia) 17.13 fills a gap
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