Don't Manufacture Tornados To Blow Out A Match

July 24, 2014

Mish's Daily

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.

Stay tuned!

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

Improve Your Returns With 'Mish's Daily'

Michele'Mish' Schneider

Every day you'll be prepared to trade with:

  • Unique insight into the health and future trends in markets
  • Key trading levels for major ETFs
  • The 'Modern Family' advantage
  • Actionable trading ideas in stocks and ETFs across all asset classes
Subscribe Now!