Market Analysis for Trading on 1/15/2014: Ship of Dreams

Mish Schneider | January 14, 2014

Since we dutifully waited on the dock for the next party boat to pull up rather than head back to shore; we boarded, taking the long (pun intended) walk up the plank. Now, we revelers are riding the mechanical bull.

However, since I am the designated driver aka Captain of this ship, I head out soberly, conservatively, somewhat hedged and not overly exposed, making sure the life rafts can hold everyone, just in case.

Wednesday, the 15th is significant on many counts. Not the least of which is the calendar range. Read below for those important ranges we are watching to break one way or another.

S&P 500 (SPY) Inside day. The 2014 high now has to clear and Monday’s low has to holdSubscribers: Positive pivots

Russell 2000 (IWM) The 2014 high now has to clear and Monday’s low has to hold

Dow (DIA) Inside day. The 2014 high now has to clear and Monday’s low has to hold

Nasdaq (QQQ) Made a new 2014 high which now has to follow through and Monday’s low has to hold

XLF (Financials) Inside day and under the fast moving average-still needs to prove itself

SMH (Semiconductors) New highs!!! 42.30 now pivotal support

IYT (Transportation) Inside day near highs-nice one to watch

IBB (Biotechnology) Never doubt the power of pharmaceuticals. New highs

XRT (Retail) Inside day and frankly, not too impressive

IYR (Real Estate) Base is in but now has to clear 64.70

XHB (Homebuilders) Gotta see more here for it to be convincing

GLD Unconfirmed phase change to bearish-just when lots of traders got bullish

USO (US Oil Fund) Dull

OIH (Oil Services) U-turn again-watch Friday’s high

XLE (Energy) Inside day in the now warning phase

XOP (Oil and Gas Exploration) Inside day

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs now have to hold 103.50 area

KRE (Regional Banks) Inside day (Flag forming)

IFN (India Fund) Subscribers: A weekly close over 20.00 will be a signal to go in in spite of the island top

EWW (Mexico) Subscribers: 2 Inside days and still very much on my radar over today’s high

CORN (Corn) Subscribers: Waiting for 31.60

BAL (Cotton) Subscribers: 53.33 is the 200 DMA to clear as my focus continues to head into commodities

FCG (First Trust ISE Reserve NatGas) Inside day

SGG (Sugar) Subscribers: Watch for a gap higher above 52.56 for possible island bottom

Bye for Now!