Archives: Mish's Daily

Your Chances Are, Your Chances Are, Awfully Good

Mish Schneider | June 24, 2017

Last week, the market traded like a golden bull that crooned to keep his head above the fire. The S&P 500 began the week strong. The rest of the week, SPY never achieved taking out the highs. Rather, it sold off, broke the fast moving average, yet held critical support above 242. The NASDAQ 100, after the nasty spill from its all-time highs on June 9th, spent the week trying to demonstrate it rather sing

A Market Without a Catalyst on the Other Side of New Highs

Mish Schneider | June 22, 2017

A Steinway without a pianist on the other side of the window. A Market without a catalyst on the other side of new highs. Both images leave us longing for the window to open, a pianist to play, and for us to sit back swept away by the music. That’s where we sit with one day left to the week and one week left to the month. Some of you might disagree with me re:

A Market That Gives a Little Less Than It Promised.

Mish Schneider | June 21, 2017

There’s style and design and then there’s short-term versus long-term vision. The 1950 Studebaker Champion Starlight Coupe exemplified that dilemma. This Studebaker looked comparatively futuristic at the time. A car long on style and design, the company itself became short-sighted. Plagued by high labor costs, issues with quality control and a shrinking balance sheet, by 1954, Studebaker was losing money. Ultimately, Studebaker’s “Fight for Survival” was lost in 1966. Here, in 2017, the stock market

Is the Market a False Hologram We’re Trained to See?

Mish Schneider | June 20, 2017

There’s the market and then there’s a hologram of the market. A hologram is a 2-dimensional image that contains all the 3-dimensional information of an object. When viewing a hologram, you can tilt the image and see the orientation of the shape move. It’s as if you see the object in the picture from a different angle. How does that apply to the market? The market appears 2-dimensional although it is 3-dimensional. The “wishful thinking” type attitude

The Market Tugs on the Reluctant Investors’ Ear

Mish Schneider | June 19, 2017

Let’s pretend that the black and gray dog (Havanese) represents relunctant investors. That makes the Aussie puppy the market. He nudges the Havanese to keep buying the market. After all, the Dow made a new all-time high and the Russell 2000 cleared back over the fast moving average. The market wants to play. The more experienced dog has doubts. Over the weekend I wrote, “…even with the barbed wire gathered in the middle of the

Market Walks Complacently by a Torn Down Barbed Wire Fence

Mish Schneider | June 18, 2017

When hiking and you come across torn down barbed wire fence, you might ask yourself: Who tore the fence down? Shall I put a warning sign near the barbed wire to warn others of possible danger? Should I take a risk and cross over to investigate what’s on the other side? Last week, those of us in the market came across another version of a torn down barbed wire fence. And, we might have asked

Rallysaurus on a Diet-And Not the Paleo Kind

Mish Schneider | June 15, 2017

Birds represent the last living dinosaurs. Throughout the years, I’ve made multiple references to the Rallysaurus as a bull market mascot. As history repeats itself, we now wonder if the Rallysaurus has finally returned to extinction. Assuming the answer is yes and the original Rallysaurus is indeed extinct, are we now witnessing it evolve into a man-made dinosaur bird software creation? Let’s also assume that the “long in the tooth” Rallysaurus was driven by true

Look Both Ways: Interest Rates, Gold and the Market

Mish Schneider | June 14, 2017

The photo was taken as we were crossing over Railroad tracks. Most of us walk looking down. Perfectly logical to paint a sign on the ground that reminds folks to look UP both ways. Particularly when crossing train tracks. This week, we have examined gold and gold miners. We have also reviewed the Megatrends that influence society and the markets. Today’s message of the Federal Reserve’s interest rate rise by ¼% also reminds investors to

Megatrends From 2016 Still Megatrendy

Mish Schneider | June 13, 2017

In December 2015, I distributed to our readers what I considered the Top 10 Megatrends to trade from in 2016 and beyond. Here they are in the original form: Climate Change: Solar Energy, Raw Materials at risk, Electric Cars, China as a possible leader in Alternative Energy Technology. Geopolitical Turmoil: Emerging Markets, Raw Materials at risk (including oil), Defense companies and Cyber Security (At Risk-Big Banks), Impact on Travel-Hotels, Airlines and Cruise Lines Domestic Violence:

Is There a Bullish Case for Gold?

Mish Schneider | June 12, 2017

Before I go into gold, some follow up on Semiconductors, NASDAQ, and the other members of the Modern Family. Over the weekend, we wrote about sector rotation. The crowded space in tech saw many getting uncomfortable in that crowd. SMH, the ETF for Semi’s crashed last Friday. NASDAQ and the FANG stocks took Semiconductor’s lead. Meanwhile, the Russell 2000 made new all-time highs. Transportation and the Financials firmed. Even the infirmed Granny Retail (XRT) held