Market Analysis for Trading on 12/16/2013

Mish Schneider | December 15, 2013

Stopped out FCG 18.67. If it holds these lows, will look for a re-entry next week.

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Existing Position: FCG Long 19.61

Name of Instrument: First Trust ISE Reserve Natural Gas

**Sell Stop: 18.67

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Existing Position:  Long IGT 17.96

Name of Instrument: International Game Technology

Current Price: 17.43

Sell Stop: 16.24

First Target: 19.24 for ½ off

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Existing Position: Long FITB 19.10

Name of Instrument: Fifth Third Bancorp

Current Price: 20.09

**Raised: Sell Stop: 19.10

First Target: 20.97

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Existing Position: Long TEX
: 35.00 1/4 position

Current Price: 37.76

Name of Instrument: Terex Corp

RAISED***Trailing Stop: 36.94

***REACHED! First Target: 37.09 Sold ½

***REACHED Second Target: 38.04 for ½ filled 38.20

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The week seemingly seals a few deals. First, the market is tired. I imagine, traders are tired too.

Although all indices remain in bullish phases, the weekly prices ended either near the lows- i.e. Russell 2000s, the Dow, and S&P 500, or on new weekly lows, as did NASDAQSecond, with the coming Federal Reserve 2-day meeting, the volume already pretty meager, should get even more so until some (if any) tangible direction on rates and tapering is offered.

Third, DIA and SPY ended on the lows of the week with inside days. Therefore, as following the range break after an inside day makes sense, one can assume if any volume does come in, it will be more to the downside. One thing for sure, smart money has evened up.

Scalpers are looking for the hot tickets-hot until they turn cold. And by week’s end, after a sterling move, TeslaGoogle, turned cold. Twitter is still hot, along with Facebook-but scalpers only please. Risk at these levels is incalculable.

S&P 500 (SPY) Inside day with the 50 DMA even more attractive Subscribers: Negative Pivots in all but in IWM

Russell 2000 (IWM) Crossed back over the 50 DMA which is the most promising thing I see. If it opens lower, don’t fight it

Dow (DIA) Inside day, also with the 50 DMA nearby unless it really surprises and gets over 158 right out of the gate and stays there

Nasdaq (QQQ) 84.00 in the wings. However, longer term, still in its runaway gap range

XLF (Financials) Volume did come in here creating an accumulation day. However, has to cross the fast moving average to get interesting

SMH (Semiconductors) Touched and held the 50 DMA

XRT (Retail) Touched the 50 DMA but not exactly a bounce. Needs to get going early on Monday or vulnerable

IYT (Transportation) 128 pivotal

IBB (Biotechnology) Holding 213 where the run started from-now support to hold

IYR (Real Estate) 61.90 needs to hold

XHB (Homebuilders) Dancing on the 50 DMA

GLD Rejected 122 but holding the reversal pattern from 12/03. 118.00 major area to hold for that reversal pattern otherwise, not pretty

USO (US Oil Fund) Retreated from the resistance which makes 34.50 important

OIH (Oil Services) 2 inside days-big eyes here

XOP (Oil and Gas Exploration) Subscribers: Possible slingshot low if can clear 65.92 R1

EWW (Mexico) 67.55 and above interesting for a possible phase change over the 200 DMA

Bye for Now!