Directing Traffic Flow During Earnings Season

April 27, 2017

Mish's Daily

By Mish Schneider


I have a fascination with traffic cops. They keep track of which cars to hold up and which ones to let move forward. They watch pedestrians crossing the street. They blow whistles. They often entertain, moving their arms and legs like dancers. Anything that distracts them from doing their job can result in all-around havoc. They put themselves in harm’s way. Each day, the market has its own traffic flow. Just as some intersections get

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The Miraculous Stair-A Rally of Legend

April 26, 2017

Mish's Daily

By Mish Schneider


In 1878, after nine days of Nun’s prayers, a rare helix-shaped spiral staircase leading up to a loft appeared at the Loretto Chapel in Santa Fe. With no attachment to a wall and built with dowels and wooden pegs, this staircase is billed as a “miracle.” The builder, whoever he was, built a innovative masterpiece. Upon completion of the staircase, he disappeared without pay or thanks. The staircase has two 360 degree turns and no

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A Matter of How Much Hot Air

April 25, 2017

Mish's Daily

By Mish Schneider


A hot air balloon is made of a fabric gas bag (envelope) with an opening at the bottom. Attached to the envelope is a basket that carries passengers. The burner, fueld by propane, injects a flame which heats the air within. Hot air balloons cannot fly beyond the atmosphere. Much the same can be said about the current market rally. The envelope or fabric of the rally is buoyant. The market’s basket holds lots of

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Baby, We Were Born To Run

April 24, 2017

Mish's Daily

By Mish Schneider


Even this fast-running Roadrunner pauses at the Handicapped Parking sign. A bird born to run, it can outrace a human. It can kill a rattlesnake. It thrives in the harsh desert landscape. Last week, the market paused at the many potential handicap signs. This week however, the market once again proves it is born to run. Like a Roadrunner, the market eats poisonous prey with no ill-effect. Like a Roadrunner, the market outraces many humans,

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How Many Traders Does It Take to Change a Lightbulb?

April 23, 2017

Mish's Daily

By Mish Schneider


How many hard hats does it take to remove a sapling? Apparently five. One to control the forklift and four to stand around and watch. Ok, derivation of an old joke. However, applicable to last week’s market action. First off, while one guy does all the work, the others fold their arms and inspect. Secondly, the forklift appears like overkill considering the size of the sapling. Thirdly, the observers stand far enough away to avoid

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Global Chest Thumping.

Weekly Market Outlook

By Keith Schneider


US equities rallied this week, with the S &P 500 up +.9% and the Russel 2000 (IWM) up +2.6%, regaining a bullish market phase. The Nasdaq 100 closed at all-time highs. Several sectors gained ground including semiconductors which reasserted itself as the leading sector and regained its bullish phase. Some safe havens such as Utilities and Gold paused this week, which is a positive for equities. This occurred despite increased geopolitical tensions that included chest

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Buffalo Bill's Wild West Show: Winners and Losers

April 20, 2017

Mish's Daily

By Mish Schneider


Continuing with the Wild West theme, “Buffalo Bill” Cody staged the period with “border dramas.” Buffalo Bill’s fame as a westerner gave his shows star appeal and an aura of authenticity. The market has had its own border drama this week. The sentiment has fluctuated between fear that the talk of strengthening fundamentals are just a show TO faith that the fundamentals have an aura of authenticity. The Russell 2000, of the four indices a

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Dance Hall Girls and Profits for Fifteen Minutes

April 19, 2017

Mish's Daily

By Mish Schneider


Yesterday, we explored the myths and truths of the old Wild West and the current Wild Market. Back in the day, rowdy frontier towns gave rise to saloons, which in turn gave rise to the “saloon girl.” The “saloon girl,” had many dfferent names, most with connotations of ill-repute. Nonetheless, saloon girls were hired to work. These jobs offered women a rare job outside of housework. (Besides the point, but interesting.) Our girl in the

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The Myths and Truths of the Market’s Wild West

April 18, 2017

Mish's Daily

By Mish Schneider


Pull into Pinos Altos, NM and get a sense of the old Wild West. Trade the current market and also get a sense of the old Wild West. Both the market and the Wild West are fraught with myths and truths. Determining what is myth and what is truth makes them difficult to figure, while at the same time making them full of intrigue. For example, the California Gold Rush of 1849 was not the

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The Market Awaits the Opposable Thumb Signal

April 17, 2017

Mish's Daily

By Mish Schneider


On April 4th I asked, “Is Wall Street the New Sesame Street?” At the time, we surmised that Elmo is a worried NASDAQ and Abby with the lower position on the seesaw, is a cautious Modern Family. With Earnings Season upon us, we may finally get the answers to the questions: Will QQQs and the FANG stocks hold up? And, if they gain weight, could that give the Modern Family more leverage to rise or

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Bombs Away

April 16, 2017

Weekly Market Outlook

By Keith Schneider


All Domestic equity markets closed with weekly losses. The S&P 500 closed under its 50-day moving average, and down -1.22%, right on its lows for the week. it’s the lowest close since mid-February. The deterioration of the Trump bump trade is palpable. Consider this cause and effect as Trump is distancing himself from key political allies and campaign promises.  Here are the monarch notes. First, Steve Bannon, has taken a bashing. it’s obvious that Trump

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Well-Marked Trails and Ones That Suddenly Appear

April 15, 2017

Mish's Daily

By Mish Schneider


Sometimes, you head out on a trail with a specific route mapped out. Other times, you head out and see an unexpected trail to follow. Last weekend, we started out hiking a well traversed trail. Suddenly, an arrow pointing to the right appeared. Written on the arrow was the word “Trail.” We spontaneously decided to follow that arrow. To ensure we would not get lost, we built a cairn. Once we made the right, we

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The Bullish Phases are Stolen Pictures

April 12, 2017

Mish's Daily

By Mish Schneider


We checked into a Route 66 hotel. Where art once hung, (reluctant to think an original painting), was now a pronouncement of theft. Where investors once hung confidence, is now a pronouncement of robbery. What has been stolen? The Bullish Phases. What replaces those phases? Flashes of Warning. I’m uncertain whether the hotel manager painted the sign to warn future guests from stealing anything else or if the intention is to remind staff to replace

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The Market’s Fire Rooster Behind Barbed Wire

April 11, 2017

Mish's Daily

By Mish Schneider


Let’s not forget that we are not even halfway through the Chinese Year of the Fire Rooster. To refresh our memories, “Regarding the economy, the fire element is often the driving force behind the stock market.  As such, fire years often generate optimism and drive up the stock market.” Raymond Lo. Back on January 24th I wrote, “It seems that the most challenging part of trading in 2017 will be knowing when to focus on

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The Market Clings and Basks

April 10, 2017

Mish's Daily

By Mish Schneider


Crevice spiny lizards are typically shy and nervous.  If approached, they will scuttle up rock faces or into crevices so that predators cannot reach them. They prefer semi-arid habitats where there are numerous holes and easily accessible cracks. Their climbing skill and small size makes them very fun to keep. The market shares similar characteristics. A bit nervous, the market has taken to scuttling up into crevices for shelter. At the same time, the market’s

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The Bull Bear Standoff

April 9, 2017

Weekly Market Outlook

By Geoff Bysshe


This week had its fair share of potential catalysts that could have begun the next major market move up or down. However, not even an U.S initiated missile attack, nor a surprising employment report job was enough to break the standoff between the bulls and the bears. This week’s Market Outlook focuses on the key charts and indicators to watch to determine when the market is ready to move. All of this week’s analysis is

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Why The Market May Be Consolidating On Quick Sand!

Mish's Daily

By Geoff Bysshe


For today’s Mish’s daily I’ve provided you with something different. I have a video for you that provides detailed analysis on the Modern Family, SPY and QQQ with the assist of our Real Motion indicators. The Real Motion Indicators are proprietary momentum based indicators that enable you to see trends in the markets that are not visible with conventional indicators. Since the momentum of the market according to these indicator has reached a very precarious

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What To Expect At Tomorrow’s Monthly Market Surprise Party!

April 6, 2017

Mish's Daily

By Geoff Bysshe


Tomorrow the market will get what it was waiting for all day today – the monthly employment report. Guessing the direction of the market’s reaction is particularly difficult right now because the markets have basically gone sideways for the last 7 days. The IWM has been a more volatile sideways, but the net result has been the same. When markets spend even just a few days consolidating it can lead to a new trend on

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IWM vs. QQQ

April 5, 2017

Mish's Daily

By Geoff Bysshe


On Monday I wrote about the one thing pattern that all the Modern Family members seemed to agree on was they were following Granddad’s (IWM) lead. Unfortunately for the bulls, IWM is not feeling very bullish. In fact, the IWM is now down year-to date. While ‘down year-to-date’ is not a new low for the year (which will be much worse), it is an ominous step in that direction. If you’re a follower of MarketGauge’s

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Is Wall Street the New Sesame Street?

April 4, 2017

Mish's Daily

By Mish Schneider


Ironically, our 2-year old’s Sesame Street birthday cake decoration perfectly illustrates the current market condition. Elmo is NASDAQ. He has the higher position on the seesaw. Yet look at his face. He’s worried. Abby with the lower position on the seesaw, represents the Modern Family. She looks up to see if the coast is clear. The NASDAQ 100 telegraphs the crowded longs in Amazon, Facebook and Netflix. It reflects the powerful move to new highs

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