You Load Sixteen Tons, What Do You Get?

June 18, 2014

Mish's Daily

By Mish Schneider

Tennessee Ernie Ford: Sixteen Tons

The Russell 2000s, featured in last two night’s daily, delivered. But, so did the S&P 500, NASDAQ and the Dow. Have I said “rare summer rally” lately?

Yesterday I wrote about China, that I was watchingeverything China-the ETF, their major momentum stocks and instruments that reflect their consumerism. I also wrote that FED policy could be a game changer for the balance of 2014.

So what changed since the SPY QQQ and DIA have been on a tear for some time?

Retail, Biotech, Homebuilders should get their chance to party now-started on Wednesday-noted in comments below last couple of days. Financials were first and did amazing. Well, really Semiconductors were first-but that’s old news now.

And China, particularly FXI the ETF should really have some fun now over the 200 weekly moving average and basing for last couple of years.

S&P 500 (SPY) Remember the 220 target that I wrote would require patience without the expectation of a straight shot?

Russell 2000 (IWM) Nice with miles to go-117.48 now should hold

Dow (DIA) Had to clear 168.10 and did

Nasdaq (QQQ) Relatively muted but still ok over 92.80

XLF (Financials) Looks good to new highs

KRE (Regional Banks) 40.76 to clear for this to join in

IYT (Transportation) FedEx gave this the shot in the arm it needed to get back in the game

IBB (Biotechnology) Over 250 next stop around 270

XRT (Retail) Looks great-and would buy dips

IYR (Real Estate) Even this came back after holding the 50 DMA

ITB (US Home Construction) Like this over 24.25-alot