Archives: Mish's Daily

Weaving the Warp and the Weft of the Stock Market

Mish Schneider | July 21, 2018

Weaving interlaces 2 distinct sets of yarn. The longitudal threads are called the warp and the lateral ones are called the weft (which means that which is woven.) The way the warp and the weft interlace is called the weave. Comparing this to the weave of the market, NASDAQ is the warp and the Russell 2000 is the weft. How the two move from here (or interlace) will determine what the weave of the market

The Russell 2000 and Transportation Market Show

Mish Schneider | July 19, 2018

Economics 101 teaches one about supply and demand. Demand refers to how much of a product or service folks will buy. Supply is how much the market can offer. When Supply and Demand are equal, the economy is at equilibrium. “The allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded. Thus, everyone (individuals, firms, or countries) is satisfied

Making Market Dollars and Sense Old School

Mish Schneider | July 17, 2018

There are so many indicators out there to choose from. MACD, Elliot Waves, Fibonnaci, Mean Reversion, Momentum, Volatility, Bolinger Bands, Phases, etc., are just a few popular among technical traders. We at have quite a few quant models that mainly employ trend strength indicators. But, what we teach and practice in our discretionary trading courses and services is the opening range theory. That technique or strategy was born from what we learned  during our

A Market That Plays, Rests, Kisses, Then Plays Again

Mish Schneider | July 16, 2018

You ever have a day where there is so much to say, the best decision is to say nothing until the plethora of thoughts process in your brain? However, that is inconvenient when one writes a daily blog. So, when I took the photo of the 2 puppies loving each other up, it gave me a plan of what to write about without saying too much. Here is a short, loving, focused discussion on the

The Market Gypsy That Lives By Her Own Rules

Mish Schneider | July 14, 2018

Each day brings so much news. More than most anyone can handle. However, one story really caught my attention last week. Last Thursday, July 12, Jerome Powell, the Fed Chair, gave an interview. He said, “I sleep pretty well on the economy right now.” Yet, he also said that recent trade policy actions could alter the Fed’s plans to continue to raise short-term interest rates. Like our wistful gypsy posed under a broken clock, he

The Market’s Butterfly Effect

Mish Schneider | July 11, 2018

I am thinking of writing the famous Chinese Astrologers who use Chinese symbology for the upcoming year and its implications for the market. Why? It’s really eerily spot on this year. To repeat from Monday night’s Daily: The “experts” expect weakness in real estate, mining and tech. They expect transportation (IYT), communication, and shipping not to fare well. Yet, wood (WOOD), fashion (XRT), media (CBS), the environmental industry (NEE, FSLR) and entertainment (NFLX, WWE), should

Tower of Power or Twin Peaks Erosion?

Mish Schneider | July 10, 2018

NASDAQ 100 and the Russell 2000 gained enough wind power to get close, but not quite clear their all-time highs. The S&P 500, not even close to the 2018 highs, worked its way towards 280. Yet, it stalled at 279.01, today’s high. The Modern Family sectors, except for Semiconductors (SMH), struggled in the face of the stronger indices. Of particular interest to me is Transportation. As mentioned in the previous Daily, “IYT trades below the

Market’s Brown Earth Dog Gets a Manicure

Mish Schneider | July 9, 2018

I use lots of dog images to help describe market conditions as this is the Chinese Year of the Brown Earth Dog. In the past, I have shared many of the predictions for the stock market made by Asian Feng Shui Masters, who delve into these sort of things. Some highlights: The heavy earth element is expected to bring prosperity to wood industries and fire industries.  The earth element is a symbol of money to

A Rally Born on the Fourth of July

Mish Schneider | July 8, 2018

Wait a minute. Did the U.S. celebrate Independence Day or the Running of the Bulls? Last week, the S&P 500 confirmed the Bullish phase, which means it closed 2 days above the 50-DMA. Semiconductors (SMH) improved in phase to Warning by closing over its 200 DMA. The Russell 2000 (IWM) and NASDAQ 100 (QQQ) continued to put their 50 DMAs in the rear view mirror. Transportation (IYT) confirmed its improved Warning Phase, with a bit

When a Dog Is the Market’s Co-Pilot

Mish Schneider | July 5, 2018

The market saw relief after the July 4th holiday. The S&P 500 went back to an unconfirmed Bullish phase, which means it closed back above the 50-DMA. It also means it needs a second close above the MA to confirm. Semiconductors (SMH) improved in phase to Warning by closing over its 200 DMA. The Russell 2000 (IWM) and NASDAQ 100 (QQQ) have begun to put their 50 DMAs in the rear view mirror. Even Transportation