Archives: Mish's Daily

Key Levels for Indices and Sectors-12-12-19

Mish Schneider | December 12, 2019

While the dust settles on the “possible” removal of existing tariffs and the “possible” elimination of new ones scheduled for December 15th, let’s update key market levels. More thorough commentary on the state of the markets will be available over the weekend. Get your copy of "Plant Your Money Tree: A Guide to Growing Your Wealth" and a special bonus here S&P 500 (SPY) 313.35 or the 10 DMA support. 317.99 new all-time high. Russell

Has the Fed De-iced Inflation From its 40-Year Lull?

Mish Schneider | December 11, 2019

Before takeoff, when the thermometer shows sub-freezing temperatures, the airlines send out de-icing equipment. The fluid is a chemical mixture that is heated and then sprayed to remove ice and snow on an aircraft. However, it has a limited ability to prevent more ice from forming. I love this analogy for current market conditions and particularly for Jerome Powell’s comments today about the future of rates and inflation. We already know there is a disconnect

Tomorrow’s The Big Day

Geoff Bysshe | December 10, 2019

Monday’s blues rolled over into Tuesday’s open, but the bulls took the lower open as an opportunity to buy. Then they got help from some news or speculation that new tariffs would be delayed. Regardless, yesterday’s Real Motion bearish short-term divergence created the type of day we expect with this condition, which is one where the market has trouble rallying. The good news, however, is that despite a lower open, the market held firm. The

Hungover, or Rolling Over?

Geoff Bysshe | December 9, 2019

On Friday, the Modern Family celebrated like it was New Year’s Eve and the beginning of a new era for the old bull market. In this new era, Grandpa Russell (IWM) would be followed as a market leader. To prove his new strength, he broke out to 52-week highs despite the larger cap indexes inability to follow suit. The celebration was so noticeable that Barron’s decorated its cover with the proclamation “Small Caps Break Out”.

The Economic Modern Family-How They Lookin?

Mish Schneider | December 8, 2019

After a brief visit to lower prices, everyone (almost everyone) in the Economic Modern Family gained in price this past week. We give honorable mention to Granddad Russell 2000 IWM. Not only did IWM show bullish muscle before the other three indices did, it also had the best percentage gain. Partially because of a rising consumer sentiment and a declining unemployment rate, Gramps got happy. As a result, Granny Retail XRT gained as well. More

Emerging Markets-How They Are Shaping Up for 2020

Mish Schneider | December 5, 2019

I’ve heard and seen chatter about emerging markets and how they can start to outperform the US market as we head into a new year. This is not new chatter, as a year ago I heard the exact same thing. We all know how that worked out. The U.S. markets ruled once again. In March 2019, LetkoBrosseau wrote a paper on the Macro Economics in Emerging Markets. “Emerging markets have taken a key role on

The Market Bears Fade to Black

Mish Schneider | December 4, 2019

As a hero rides into the sunset, the screen fades to black. In the market, the bears rode into the sunset with a fade to black. Typically, an audience feels more relaxed when a scene or film ends using a fade to black. It gives the perception of closure. A fade to black also symbolizes a passage of time. There is no point featuring a fade to black if the next scene takes place in the

Was That the Market Selloff?

Mish Schneider | December 3, 2019

Bears won the dog fight from the bulls and the agnostics today. However, was this the dip to buy or the start of a way more major selloff? Semiconductors SMH, might have the most interesting chart pattern and should hold the key to the next move in the overall market. On November 4th, SMH gapped higher and since it was a new all-time high, that made the pattern a clean breakaway gap. Since then and

Dogs in this Fight-Bulls, Bears and Agnostics

Mish Schneider | December 2, 2019

Black Friday and Cyber Monday posted record sales. Yet Amazon, and many of the retail stocks that saw huge gains last week, today fell. The brick and mortar retail ETF XRT, on alert for a move higher, also dropped by over 1%. In other news, while Americans blissfully bought multiple items on sale thereby increasing their household debt, many other areas of the globe continue to revolt against oppression. Rising food and raw material prices

A Stock Market That Offers Bulls Tasty Treats

Mish Schneider | November 28, 2019

Not that dogs are the arbiter of good taste; this cutie pie smacks her tongue at the thought of receiving a tasty treat. And so, the day before the Thanksgiving break, the stock market also smacked its tongue at the thought of receiving a tasty treat. What is the treat the market anticipates masticating? Mainly, it’s the completion of phase one of the trade talks, despite any hard evidence that China has gone to the