June 5, 2014
By Mish Schneider
Good things come in small, tidy packages and Thursday the package arrived in the form of a 66-year old man from Italy and President of the European Central Bank -Mario Draghi.
That made not only our rotation of sectors call outs into Retail, Regional Banks and Biotechnology profitable, but also gave the small caps a healthy and welcomed push up over the 50 DMA plus.
Wasn’t too shabby for the S&P 500, Dow or NASDAQ I might add. However, the interest rates or long bonds, after touching down on the 50 DMA popped, while the US Dollar touched the 200 DMA for the first time in nearly a year, then fell. Hard.
So, next rotation? Jobs report in the AM-a rather cryptic Janet Yellen. If interest rates drop again, look to certain commodities especially gold and silver (perhaps miners as well) with Homebuilders, lagging behind Real Estate, breaking away from its congestion (ITB) over 24.40.
S&P 500 (SPY) Day 8 and counting of the breakaway gap
Russell 2000 (IWM) 115.25 next hurdle and now, 114 good support to hold if strength is here for the interim haul
Dow (DIA) Rest over-new highs
Nasdaq (QQQ) New high close again
XLF (Financials) Hello new high close!!!
KRE (Regional Banks) Did you watch the 50 DMA after an inside day-now in the rear view mirror?
SMH (Semiconductors) Sweet semis
IYT (Transportation) Looks ready for next leg up
IBB (Biotechnology) Stair climbing which seems mild compared to some other groups-but don’t discount that
XRT (Retail) 85.23 next hurdle then looks like the next mover
IYR (Real Estate) Man, I should only do so well after a 3 day rest!
ITB (US Home Construction) Big eyes here over 24.40
GLD Not exciting but not going south while rates drop
OIH (Oil Services) ladder up
XLE (Energy) New highs
XOP (Oil and Gas Exploration) 78.00 a big wall to cross
FCG (First Trust ISE Reserve NatGas) 22.30 support with another good looking chart
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs defended the 50 DMA and now will look at the resistance at 112.90
PHO (Power Shares Water Resources) Water ran up big today
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