On We Blindly Stumble

January 21, 2014

Mish's Daily

By Mish Schneider


From Noises Off

Even more noise as we await until the market (the Dow) breaks the range of the first two weeks one way or another. However, with S&P 500 holding 184.00 level, the Russell 2000s and NASDAQ going to new highs, today’s sloppy action proved encouraging.

The perplexing relationship among the rates, US dollar and the metals forges on. Silver and Gold dropped yet held critical support on the daily chart. The US dollar maintained the recovery phase. Rates fell again.

Natural Gas and Gas and Exploration had particularly strong moves, crossing back above the 50 DMA. Regional Banks performed well along with the darling of the market-Biotechnology. Retail continues to drag.

All in all, rates remaining on the low side should give oomph to certain commodities and any interest rate sensitive instrument (Real Estate).

S&P 500 (SPY) 184.94 the high to clear for a clean confirmation. Then back to looking for 220.

Dow (DIA) 165 is the place to clear and 162.14 the place to hold

Nasdaq (QQQ) Some big earnings coming up here-GOOG, AMZN, AAPL to name the top 3.

XLF (Financials) Over 22.06 looks like the 3 day correction is done

SMH (Semiconductors) 42.65 is the place to clear after an inside day

IYT (Transportation) Like this over the highs for more

IBB (Biotechnology) Fearless leader

XRT (Retail) Even closer to the 200 than the 50 DMA right now.

XHB (Homebuilders) On cue, tested and held the 50 DMA.

GLD 119 acted as support.

USO (US Oil Fund) 34.26 the 50 DMA to clear

XLE (Energy) Back to an unconfirmed bull phase, but not an exciting group for me right now

XOP (Oil and Gas Exploration) Unconfirmed phase change to bullish

TBT (Ultrashort Lehman 20+ Year Treasuries) Dropped to the 200 DMA so if rates will firm, it will be from this point

UUP (Dollar Bull) Inside day

FCG (First Trust ISE Reserve NatGas) Unconfirmed bullish phase and trendline breakout. Look for an ORR

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