January 17, 2019
By Mish Schneider
One of my tweets today:
$FXI red $EEM red-I haven’t changed the plan-watching 4 mkt to roll over b4 going more short (SMH lightly short)-managing existing longs (includes $NBEV) w/ tighter stops-no new swing longs & starting 2 establish pos. in some commodities. #transparency #subjecttochange
For those who may not be familiar with the vernacular, $ is used before an instrument symbol because it appears on StockTwits that way.
FXI is the China ETF. EEM is the emerging markets ETF.
NBEV is New Age Beverage, a stock we have been trading.
I use numbers to substitute for parts of a word or for a whole word to stay within the allotted number of twitter characters. W/ is short for with.
I added the hashtag to transparency as I like people to know I do not tell you after the fact so that I only look smart.
And, I added the hashtag to subjecttochange, because in this market, one must stay flexible.
And wouldn’t you know it?
About five minutes after I posted that tweet, the news that the U.S. is weighing lifting China trade tariffs to break trade talk stalemate appeared.
And off she went.
Fake news? Perhaps.
It was denied moments later.
Daytrading market? Definitely.
Have the bulls busted out of the cage?
Regional Banks KRE continue to help the rally.
Transportation IYT, got closer to the overhead 50-DMA.
Semiconductors SMH are still in a bearish phase, but over 90.00, a pivotal point.
The Russell 2000 IWM confirmed the Recuperation Phase.
The S&P 500 SPY went into an unconfirmed Recuperation Phase.
Retail XRT is back above 43.75, its pivotal area, and now looking for the 200-week Moving Average.
All sounds great, right? All points to the bulls holding the treats.
Yet, the impetus for the move up today was based on unsubstantiated news.
This is disturbing of course. But let’s pretend we live under a rock.
What does today’s action tell us?
My original tweet?
Right now, still holding onto that transparency, and if the prices and key levels hold, will report more on why I am subject to change.
Last night I wrote, “2017 taught us to not overthink. 2018 taught us not to be too complacent.”
What will we learn in 2019? So far it’s to not overreact.
Russell 2000 (IWM) Confirmed Recuperation Phase with the weekly chart resistance at 147.40. Under 144 trouble
Dow (DIA) Unconfirmed Recuperation Phase.It wil have to have a second close above 243.57
Nasdaq (QQQ) NASDAQ has room to 62-the support level.
KRE (Regional Banks) 52.84 is the weekly chart resistance. 51.31 the 50 DMA support
SMH (Semiconductors) Weakest link at this point. Bearish Phase. 88.50 the next support. 90 pivotal and back over 91 may see new life
IYT (Transportation) This still has a way to go to see the 50 DMA at 178.21. So for now, a close under 170 would not be a good sign
IBB (Biotechnology) 110 resistance held this from continuing up with a red close. 106 closest support
XRT (Retail) 43.75 the pivotal number still. Above good, below we are looking at 42.25 support. 44.78 the 200-WMA resistance.
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