At the 2-week mark for 2014, NASDAQ closed on new highs along with the Russell 2000s or small caps. The S&P 500 tested, but closed just shy of new highs while the Dow, has a lot more to prove.
However, that only tells a partial story. Several sectors do not reflect the optimism of the indices, namely Retail, Oil and Services, Energy, and Homebuilders.
Biotechnology took a pause; Financials, Semiconductors and Transportation firmed to new highs; Real Estate recovering well off the lows and the US Oil Fund still in a bearish phase, managed a decent rally after becoming significantly oversold.
Each day begins the hunt for the overachiever versus the underdog. Perhaps this diversion will continue until we get through the many big names still yet to report. Perhaps this is the way of this year.
Perhaps the market would be a lot clearer if we all move to Colorado.
S&P 500 (SPY) If the move today is real, should hold the gap low. I did write some time ago that 220 was the measured move here. But, I may be totally gray by the time it gets there Subscribers: Positive pivots
Russell 2000 (IWM) New highs-like to see it stick
Dow (DIA) 165 has to clear at the least
Nasdaq (QQQ) Gap low from this session needs to hold
XLF (Financials) So it proved itself-one place I imagine, will like a firm US dollar
SMH (Semiconductors) Yup, new highs
IYT (Transportation) New highs; looking to see if it continues
IBB (Biotechnology) Pause
XRT (Retail) Still looking heavy which could be a precursor for more trouble
GLD Confirmed phase change to bearish-but not so convinced it will go much lower at this time
USO (US Oil Fund) Finally, a short covering rally but still has overhead resistance
OIH (Oil Services) Digesting here, but not that impressive
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs have a 2-day correction which means either it holds here or back to trouble for rates
UUP (Dollar Bull) Unconfirmed phase change to recovery. Subscribers: Over 21.80 will most likely get back in with risk to under 21.62
KRE (Regional Banks) Subscribers: Rallied above the inside day then languished. If holds 40.00, and clears 40.50 a good reason to think higher
IFN (India Fund) Subscribers: A weekly close over 20.00 will be a signal to go in in spite of the island top
EWG (Germany) No more island top-a good thing
EWW (Mexico) Subscribers: Took the small swing position but now, want to see it hold 66 and clear 67.00
BAL (Cotton) Subscribers: 53.31 is the 200 DMA to clear as my focus continues to head into commodities
Bye for Now!
