A Melt Up and a Melt Down

February 20, 2017

Weekly Market Outlook

By Keith Schneider


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US Equities took a que from events in Asia this week as the bulls murdered the bears in a very public show. The market is on a post-election tear not seem since LBJ took office, with the benchmark S&P 500 + 1.5% on the week and over 5% YTD. We observed  ( http://www.marketgauge.com/resources/littlebigview-trades-tutorials/a-canary-in-a-coal-mine-just-died-stock-market-beware /)  some very extreme and unusual price movement in options trading this week which might have indicated a blow off to this

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The Fire Rooster and the Hen are Expecting

February 18, 2017

Mish's Daily

By Mish Schneider


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Last week, the fire roosters and hens got it on. After the rooster’s clumsy but successful leap onto the hen’s back, all four indices climaxed at new all-time highs. So, if first comes love, then comes marriage, is this egg the baby in the baby carriage? Perhaps suffering from some post-partum stress, our hen who laid this egg, now sits atop it hoping it hatches into a fine, healthy chick. Hopeful, there are nonetheless reasons

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One Market-Split Brain

February 16, 2017

Mish's Daily

By Mish Schneider


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An inferior view of your brain might look similar. The frontal lobe (on top) carries out higher mental processes such as thinking, decision making and planning. You can see the frontal lobe is currently torn between a seller’s versus buyer’s mentality concerning the stock market. The cerebellum (on the bottom) controls balance and coordination of our muscles and the body. You can see the brain’s struggle to maintain equilibrium with the market currently frothy, but

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A "Canary In A Coal Mine" Just Died. Stock Market Beware.

Trades & Tutorials

By Geoff Bysshe


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This post involves two very important concepts in anticipating the market’s next move: 1. Relative strength, and 2. Deviations from a norm. Therefore, this is something you should put into your trading bag of tricks no matter when you read this, but.. If you are reading this on the day it was posted it may prove to be very timely, because the conclusion drawn from this post could be that the market’s current melt up

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"Bwok Bwok Bwok Bwok Bwok Bwok"

February 15, 2017

Mish's Daily

By Mish Schneider


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A whole lotta clucking going on. Yesterday, 2 brothers often in conflict, stood together. Big Brother Biotechnology and Prodigal Son Regional Banks, in their first real signs of feistiness since this rally began, made intentions known to the others in the Modern Family coop. As fire roosters hormonally charged, they flambloyantly danced to get the chickens’ attention. Maybe Valentine’s Day had something to do with it. To get lucky, a Rooster will take a sudden

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Big Brother and Prodigal Son Rumble in the Jungle

February 14, 2017

Mish's Daily

By Mish Schneider


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Biotechnology and Regional Banks-2 brothers of the Modern Family-opened their T-Rex Rallysaurus mouths today and roared to new 2017 highs. Those rumbles stirred but could not shake Transportation through the potential triple tops. IYT closed in the red. The war-cry barely moved the sloth-like Retail sector back up to the 200 DMA. Sister Semiconductors, out of earshot, saw the open mouths and yawned in return. SMH also closed in the red. Inspired by his sons

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Step Right Up to Today’s Market Action

February 13, 2017

Mish's Daily

By Mish Schneider


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In keeping with my theme of gauging the internal breadth of the market through the Modern Family. Monday’s strong session was not without disparity. Regional Banks (KRE) made early gains and even posted a new all-time high. However, KRE ended the session closer to its intraday lows. Sister Semiconductors (SMH) rose by over1%. Yet amazingly, did not do much as far as price levels, rather hovering just above the all-time highs. The Russell 2000 (IWM)

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Shark Tank

February 12, 2017

Weekly Market Outlook

By Keith Schneider


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US Equities markets handled multiple faux paus of the new Trump administration as a sideshow and focused on an upcoming proposal to reduce taxes. The S&P 500, NASDQ 100, and the Dow Industrials (INDU) all soared to all time new highs and closed around +1% on the week. One thing to note however is that trading volume has dropped to levels not seen since 2007. It could be the sharks are swimming in the dark

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Biotechnology Got Investors on a String

Mish's Daily

By Mish Schneider


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“I've got the world on a string, sittin' on a rainbow Got the string around my finger What a world, what a life, I'm in love!” Frank Sinatra What a week, what a market, we’re in love! With 3 out of the 4 indices ending the week on new highs, at last we broke out over the 2-month consolidation of prices. Well, nearly everyone that is. Perhaps this is the part of the Fire Rooster

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The Fire Roosters Bloom in La La Land

February 9, 2017

Mish's Daily

By Mish Schneider


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The Chinese New Year of the Fire Rooster began January 28th. Amazingly, if you apply the personality characteristics of the associated animal to how the markets have traded these last few years, the similarity between the two is uncanny. Considering the Fire Rooster is flamboyant, optimistic and lives to remain the center of attention, today’s market action surely has lots of folks crowing. However, one’s greatest strength is also one’s greatest weakness. The warning of

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Three Trading Egrets

February 8, 2017

Mish's Daily

By Mish Schneider


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Let’s face it, this market has baffled pretty much everyone. This year, “uncertain” is one of the most widely used words. I titled my 2017 Picks published in December “Uncertainty is the New Sure Thing.” So yes, the Dow sits over 20,000 and NASDAQ continually makes new highs. Yet the other typical historical relationships aren’t working out so typically. That has left many traders with some egrets (regrets). What are the top 3? Too much

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Chillin’ With Our Favorite T-Rex

February 7, 2017

Mish's Daily

By Mish Schneider


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Under the weather with a bad cold, so apologies for my brief commentary tonight. With the market trying to find its way, my warnings over the weekend about the resistance channel in the Russell 2000 and the growing disparity among the Modern Family hopefully serves as a caution. The S&P 500 has a record 36 days in a row without a +/-1% move. Therefore, good time to hang back and exercise patience. Meanwhile, here we

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This Sector Is Poised To Surprise The Market (but we see it coming)

February 6, 2017

Trades & Tutorials

By Geoff Bysshe


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Our Triple Play Indicators were on top of the up move in GDX weeks ago. Now GDX is breaking out over its 200-day moving average. You don’t need to chase it. Watch this video to see how to avoid paying up, and more importantly… The healthcare and biotech sectors are heating up, but you may not have noticed if you don’t have our Triple Play Indicators with the Price Leadership Indicator. In this video I’ll

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A Market That's Prickly Yet Soft

Mish's Daily

By Mish Schneider


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The “glochids” are loosely attached making it soft to the touch. Since loosely attached, they are prone to dislodge and fly in the air if bumped or shaken. Rats, mice, gophers, chipmunks, and bats all eat prickly pear cactus. Should the reddish-brown glochids get into the eyes of these animals, they can cause blindness. Hence the word “blind” in the name. Prickly yet soft. Visually pleasing yet blinding. A spiny cactus with no spine. As

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Have ‘Animal Spirits’ Taken QE’s Place As The New Fuel For The Bulls?

February 5, 2017

Weekly Market Outlook

By Geoff Bysshe


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President Trump has summoned up ‘animal spirits’ which seem to be taking more and more credit (or blame depending on your market bias), for the bull market. Here’s one way to keep your eye on them, so they don’t catch you by surprise. Additionally, this week’s video (below) will show you ways to let the market, not animal spirits drive you to the best trading opportunities. Over the last several weeks I’ve noticed more and

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Year of the Chicken McNugget

Mish's Daily

By Mish Schneider


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According to the film “Super Size Me,” McNuggets are made from chickens with unusually large breasts. The ground up meat is combined with stabilizers and preservatives. The chicken mash is then pressed into familiar shapes, breaded, deep-fried, and freeze-dried. As the week ended, unusually large breasted buyers took the Dow Jones Industrial Average back over 20,000. The stabilizer? A solid jobs report. The preservative? A Trump executive order to roll back Dodd-Frank, a law that

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The Road to Where Exactly?

February 2, 2017

Mish's Daily

By Mish Schneider


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In the Canyon, to navigate the sandy paths requires an all-wheel drive vehicle and a driver with a steady hand. Harsh elements have made these canyon roads unpredicatable. A novice can easily turn a joy ride into a disaster. Lack of experience will make a driver succomb to a steering wheel that has a mind of its own. One false turn will veer you towards a rock, mountain or trees. Cars have been gobbled up

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The Fire Rooster’s Market Headdress

February 1, 2017

Mish's Daily

By Mish Schneider


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The 12 Yei Feathers and mask depict a special category of holy people that dance during a nine-day winter ceremony called “The Nightway.” The Navajo learned that the disruption of harmony causes a large range of illness: mental, physical, emotional and spiritual. The intent of this ceremony is to restore harmony. Seen on Twitter: “WH Natl Sec Advisor blasts Iran over "provocative" missile test, attack on vessel, says "we are officially putting Iran on notice."

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Does a Snowball Have a Chance in Hell?

January 31, 2017

Mish's Daily

By Mish Schneider


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Are you a trader or investor who believes the market is heading to 30,000 or 10,000? I can have a lot of fun with “hell” and its plethora of clichés. The Road to Hell, Hell in a Handbasket, Hot as Hell, and most apropos-A Snowball’s Chance in Hell.” We clearly have a bull market paved with good (and not so good) intentions. Going to Hell in a Handbasket implies a course for disaster. Hot as

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Who You Calling Chicken?

January 30, 2017

Mish's Daily

By Mish Schneider


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This Tyrannosaurus Rex, that looks very much like a fire rooster, is the bird’s predecessor. So the Rallysaurus, which some would argue began the market’s road to extinction today, may just be a rooster in dinosaur’s clothing. After a weekend of tumultuous polices that were met with opposition, the confidence in the market’s ability to maintain strength came into question. The Dow broke down back below 20,000. Significant? Psychologically perhaps. Technically? Not so much. However,

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