November 6, 2013
By Mish Schneider
If you actually need to get somewhere, a hot air balloon is a fairly impractical vehicle. You can't really steer it, and it only travels as fast as the wind blows. But if you simply want to enjoy the experience of flying, there's nothing quite like it. To reheat and keep a balloon flying, the pilot continually fires the fuel jets; hence, the balloon continues to rise. There is an upper altitude limit; however, since eventually the air becomes so thin that the buoyant force is too weak to lift the balloon any higher. Piloting a balloon takes skill, but the controls are actually very simple. Of course, even the most experienced pilot doesn't have complete control over the balloon's flight path. Usually, wind conditions give the pilot very few options. Consequently, you can't really pilot a hot air balloon along an exact course. And it's very rare that you would be able to pilot the balloon back to your starting point. So, unlike flying an airplane, hot air balloon piloting is largely improvised, moment to moment. The balloon landing can be a little rough, but an experienced pilot will bump along the ground to stop the balloon gradually, minimizing the impact.
This is not going to be your 2013 “buy anything, look smart, then crow about it” market going into 2014.If you are clueless on sector/group rotation and asset allocation, I suggest you study up.
S&P 500 (SPY) So, how come this didn’t make new highs you might be asking yourself? Don’t take that as a sign of weakness.
Russell 2000 (IWM) Noisy, scary, but at the end of the day, held Tuesday’s low. 110.18 remains the place to clear
Dow (DIA) Incredible and strange brew here. Heading to the top of a channel.
Nasdaq (QQQ) Like to see 82.50 hold now in what looks like sideways consolidation.
XLF (Financials) 20.39 support and has to clear 20.70.
SMH (Semiconductors) Back over 41.00 will be hard to argue with
XRT (Retail) Could be a reversal candle, but has to confirm that Thursday
IYT (Transportation) Could be a reversal candle, but has to confirm that Thursday
IBB (Biotechnology) Can’t say I haven’t warned you enough on this having had its day. Big drop under the 50 DMA.
IYR (Real Estate) Inside day.
XHB (Homebuilders) 30.00 now the support area to hold.
GLD Seems this has fallen out of favor to trade
USO (US Oil Fund) A relief rally which happens when an instrument gets too oversold.
OIH (Oil Services) 50.26 and above gives this promise
XOP (Oil and Gas Exploration) Heading to the 50 DMA
TBT (Ultrashort Lehman 20+ Year Treasuries) Tried to close over the 50 day moving average, but did not.
UUP (Dollar Bull) Unconfirmed phase change back to Bearish-yo-yo
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