July 24, 2014
By Mish Schneider
The interest rates firmed as I suspected they might and wrote/tweeted about which for now, helped the financial sector and impacted gold, which I also wrote about.
No, not crowing-just trying to follow the bouncing ball! My very intelligent partner, Geoff Bysshe said to me, “Mish, try not to look too closely at the ticks. Give trades room and trust the phase of the overall market until that changes.”
I love watching and gauging sector rotation and getting a step ahead-really-that is my specialty. I like that XLF (Financial ETF) closed near the 2014 highs and that other bank stocks have acted well. I like that China (one I can crow about) is at new highs again. I am still waiting for the run in Solar energy-oh it will happen-matter of timing of course.
I do not like overthinking, scalping for pennies, losing focus or listening to noise. The S&P 500 is still rocking toward the target of 220 since the runaway gap that happened on May 27th even with the selloffs. There’s your trend until it’s not.
S&P 500 (SPY) 197.85 important support still for the short-term
Russell 2000 (IWM) Back into an unconfirmed warning phase. Support on the way down unless it breaks 113.45 the 200 DMA-then way more worrisome
Dow (DIA) 170.00 good place to hold
Nasdaq (QQQ) Like when I see this work off overbought conditions without much price damage-risk of reversal candle there, but has to confirm of course
XLF (Financials) 23.07 the 2014 high
KRE (Regional Banks) Slingshots: Possible brick wall bottom which will look better over 39.29 the 200 DMA
SMH (Semiconductors) Let sleeping semis lie
IBB (Biotechnology) Tried but couldn’t take out the 260 resistance
XRT (Retail) Had one of those one day wonders to the upside, now looking for it to hold
IYR (Real Estate) 73.00 pivotal-as in might need a rest under that level
ITB (US Home Construction) Talk about your one day wonders
GLD Right on the major moving averages-moment of truth
USO (US Oil Fund) Unconfirmed warning phase or am I good, not good, good, not good?
OIH (Oil Services) Inside day
XLE (Energy) Good overall performance
XOP (Oil and Gas Exploration) Looks okay
TAN (Guggenheim Solar Energy) Subscribers: Looking at longer term and trying to ignore the noise-still see major upside just a matter of when
TBT (Ultrashort Lehman 20+ Year Treasuries) Popped into resistance
UUP (Dollar Bull) confirmed accumulation phase
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