Archives: Mish's Daily

Did My Fortune Cookie Tell Me to Buy Toyota?

Mish Schneider | January 23, 2020

Occasionally, I like to feature a trade idea. Generally, I will go more for a commodity, index or sector. However, this fortune cookie got me thinking. At first, I thought it was about my Range Rover, which is a 2012 Autobiography supercharged version. It’s currently useless and sitting at the shop as the timing chain busted. We later learned that there are a couple of class action suits against Land Rover as this model was

The Economic Modern Family Stays Inside

Mish Schneider | January 22, 2020

The weekly charts of the Economic Modern Family (Russell 2000, Transportation, Retail, Regional Banks, Biotechnology and Semiconductors) tell a mid-week story. With the exception of Semiconductors, all the other members are trading inside the trading range of last week. What does that tell us? To review, last night we looked at junk bonds JNK as a gauge of investor’s appetite for risk. The 2020 high thus far is 110.33. The price stopped right at a

How’s the Market’s Appetite for Risk?

Mish Schneider | January 21, 2020

I hope you did not miss my annual write-up about the upcoming Chinese New Year, Year of the Metal Rat. As mentioned, this year the fire element is completely absent. Raymond Lo (my go-to source) says that pessimism, cynicism and despair will set in and contribute to an economic decline. Clearly, starting the week with reported cases of the corona virus sparked some of today’s pessimism. Yet if Lo is correct, without the fire element

Investors: Get Ready for the Year of the Metal Rat

Mish Schneider | January 19, 2020

Lord Ganesha rides Mooshika, or rats. Although Indian scripture says he rides mice and not rats. Regardless, there is also supporting literature that claims it is a large Indian rat or a bandicoot rat. Mooshika, or a known pest to farmers and crops, helps Ganesha. As Lord Ganesha is the remover of obstacles, his standing or riding on the rat symbolizes that with the rat’s ability to slither through tiny holes, together they really can

Stock Market Feels Like Summer, Looks Like Winter

Mish Schneider | January 16, 2020

The juxtaposition of snow today seems incongruous compared to the hot stock market. The east coast USA, and in the last couple of days the southwest, have had unseasonably warm days. The warmer days along with the climbing market felt right. However today, with another round of new all-time highs, when I stepped outside to snap the photo, I got a chill. Is there a metaphor here between the wintry weather reminder and the overly

Why Regional Banks KRE is the Prodigal Son

Mish Schneider | January 15, 2020

We thought that Regional Banks KRE could toprock or continue breakdancing from its already upright position. And he did for a day, but not today. In fact, KRE’s moniker as the Prodigal Son, typically works out as well-deserved. In the Bible, the Prodigal Son had a loving father, a good home, provision, a future, and an inheritance, but he traded it all in for temporal pleasures. As a result, he came home penniless and asked

Stock Market Levels and Follow-Up

Mish Schneider | January 14, 2020

Last night we talked about Breakdancing and its four kinds of movement: toprock, downrock, power moves and freezes. We thought that Regional Banks KRE could toprock or continue dancing from its upright position. We thought that brick and mortar XRT could downrock, or start from the floor and dance its way upright. We thought Transportation IYT could power move, gaining both speed and momentum. And we thought that Biotechnology IBB could freeze or halt from selling off, but also continue

What Market Sectors are Waiting to Breakdance?

Mish Schneider | January 13, 2020

Breakdancing mainly consists of four kinds of movement: toprock, downrock, power moves and freezes. Toprock movement is done from a standing position. Downrock movement is done from the floor. Power moves rely on speed, momentum and acrobatics. Freeze movement is no movement at all. All motion is halted. With so many sectors exploding to the upside already, what is left to toprock, downrock, power or freeze? The sector that could toprock as it is already in a standing position is

Will Decaying Market Bears Reignite?

Mish Schneider | January 12, 2020

Smokey the Bear originated in New Mexico in 1950. A major wildfire in the Capitan Mountains brought firefighters to the scene. As the crew battled to contain the blaze, they received a report of a lone bear cub seen wandering near the fire line. A forest ranger found the poor little dude in a tree, charred and burned. He drove the cub to Santa Fe, where he was treated for massive burns. After he healed,

Price Levels in Indices and Key Sectors Only

Mish Schneider | January 9, 2020

Photo by my friend JR Lancaster Tonight, we look at the levels in the indices and my Economic Modern Family. Without commentary from me, the charts and price speak volumes. Here is a link to my RealVision segment. Get your copy of "Plant Your Money Tree: A Guide to Growing Your Wealth" and a special bonus here S&P 500 (SPY) 323.31 pivotal. 326.73 the ATH. 320 key. Russell 2000 (IWM) Must clear 167.12 with 165.55