Archives: Mish's Daily

Solar Eclipse Saved The Market From Crashing Today

Geoff Bysshe | August 21, 2017

The market needs more solar eclipses. In yesterday’s commentary I concluded that Monday’s market should be approached with and open mind because 3 of the 4 major stock indexes were sitting on a big support level, and therefore… Further declines below these support levels could snowball into an ugly decline. Sure enough, early in the trading session, the SPY, QQQ, and DIA all broke their Friday lows and major support levels, which “should have” precipitated


Monday Will Require An Open Mind

Geoff Bysshe | August 20, 2017

While the media focuses on all the people leaving Trump’s administration, the market tells you where the resulting next opportunity will be. On Friday the energy commodity complex (USO, UNG, and KOL) started acting as if it’s ready to run. For starters, on Friday USO exploded higher from a very import level 9.50. As a result I looked around and decided to expand the coverage (below) of the energy sector to include UNG (Natural Gas)


Enduring Bulls Drink from Water-Bare Succulents

Mish Schneider | August 16, 2017

The bulls, at this point, have petrified. They look as though they have died. Nevertheless, the bulls endure while they suck up whatever green shoots they can optimistically find. Yet, gold bulls remain relentless. The Treasury 20 + Year Bonds may be topping out, although with no real conviction for higher rates given today’s mixed Fed statements. Reduce balance sheet or wait for increased inflation data? The Russell 2000 stays stubbornly in a warning phase.


Market Pedals to Nowhere

Mish Schneider | August 15, 2017

A stationary bike, a bicyclist and a blender. Pedaling, not for the purpose of going anywhere. Rather, for working the quads and blending cocktails. The market had few buyers, thereby did not really go anywhere. On the other hand, some stocks gave buyers a nice buzz! After last week’s sell-off and then Monday’s bounce, we wondered if the buying coming in to the market would sustain. Likewise, we wondered if the action gave buyers a


Is the U.S. Market in the Weeds?

Mish Schneider | August 14, 2017

Walking the dogs on Sunday, we came upon this trash in the weeds. Ironic, because it appeared one day after the horror in Virginia. Ironic, because rather than thinking the tossed “America” beer can is a sign from the universe, instead it reminded me of those who think throwing trash from their cars is ok. Ironic, because after last week’s sell-off, I wonder if today’s bounce was merely an opportunity to lighten longs. Ironic, because


The Market’s Baroque Doors, Gloomy Rooms

Mish Schneider | August 12, 2017

The doors in Santa Fe are fabulous. The older ones were made with ornate and intricate woodcarvings. Their colors conjure up the southwest landscape. People buy them and replace their modern doors for these. In contrast, these historical portals frequently open to modern atmospheres. In the market, a similar contrast can be observed. Historical portals mask a modern atmosphere. To clarify, historical data is what most technical analysts use to decide which instruments they should


The Fire Rooster Cock-a-Doodle-Dies

Mish Schneider | August 10, 2017

Back in January 2017, I wrote about the Chinese New Year’s Astrological sign of the Fire Rooster. At the time, I reported that “Yin fire is still positive for the economy and the optimism continues to bring confidence to buy, particularly in spring and summer time when the candle flame gains seasonal support and drives up the illusory optimism.” However, I went on to write, “as the yin fire is an illusory candle flame, it will be extinguished


Everything At Hand

Mish Schneider | August 9, 2017

Saw this piece locally. I love it! The sculptor explores iron as a profoundly symbolic material. He believes that iron’s “regenerative matter, aesthetic malleability and cultural meaning resonate…” The name of the piece is “Everything at Hand.” Much the same can be said for the market. If iron is symbolic of regeneration and aesthetic malleability, then certainly, the market is made of iron. And given that the Dow barely budged after Trump’s North Korea statements,


The Disambiguous Ambiguous Market Waltz

Mish Schneider | August 8, 2017

Who is beating the drums? He’s smiling so he must be happy, right? Same question to the market. Who is buying the new highs in the S&P 500, the Dow and NASDAQ? With so much money around and no other place to put it, the U.S. banks, corporations and China (lots of money sloshing around) are. So, they must be happy, right? Who is singing? Perhaps with equal passion as the man in the photo,


Thank You for Buying; Come Back Soon

Mish Schneider | August 7, 2017

Please allow me to be the gazillionth person to tell you that the Dow made another new all-time high, now 9 days in a row. Please allow me also to repeat to you that this market continues to wear many Faces. We left off with the weekend Daily focusing on the Bearish, Warning, Two-Faced and Hopeful Faces. (After all, the Bullish ones require no further comment.) Two Modern Family members important to the overall economic