Market Analysis for Trading on 4/4/2014

Mish Schneider | April 3, 2014

The image that comes to mind after Thursday’s session is one from the 2009 Kentucky Derby when a small New Mexican horse named Mine that Bird, went off at 50:1 and won by fearlessly galloping along the rail.

The rotation of the sectors and groups in the market might be the most entertaining aspect as it has the savvy investor rooting for the underdogs only to find themselves holding a valuable ticket. The favorites of 2013 have little of their old smugness left.

Social Media for example. As an overall long term growth area-no doubt that impact remains. But, anyone who has heard us speak at our plethora of free webinars on phases (one tomorrow in fact), knows that in the cycle of nature, everything runs circular. The key is to know where any instrument is on the circle.

Here’s where I'd park money right now-Commodities, US dollar, Regional Banks, Food, China, Real Estate-odd combo, right?

Not really though-in the cycle of phases, China is bottoming. And we all need a place to live and something to eat.

S&P 500 (SPY) 4 days up and a small correction. Jobs report on Friday. Subscribers: Negative Pivots in all except DIA

Russell 2000 (IWM) 116.60 first point to hold, then the 50 DMA but over 118.50, some redemption

Dow (DIA) Not much of a digestion and actually, looks good

Nasdaq (QQQ) The leaders not so much. Tested and held the 50 DMA though

XLF (Financials) 22.40 pivotal

SMH (Semiconductors) That was the rest

IYT (Transportation) Held where it needed to

IBB (Biotechnology) Another example of the cycle at play

XRT (Retail) Watch for this to either clear the highs

IYR (Real Estate) 68.85 is the real place now to cross but very clear congestion at current levels

GLD 125.50 or 121-what will it see first?

USO (US Oil Fund) Unconfirmed accumulation phase. Friendly here overall

XLE (Energy) Our portfolio has hit two profit targets here

XOP (Oil and Gas Exploration) I was not shy in calling this one out too

TBT (Ultrashort Lehman 20+ Year Treasuries) This will surely have a response to the jobs report

PHO (Power Shares Water Resources) Looks poised

UUP (Dollar Bull) Changed phases and now a place to buy against is 21.50

KRE (Regional Banks) The strong, silent type

FXI (China Large Cap Fund) Subscribers: Very well could be forming a significant and long term bottom-which was part of my 2014 forecast

CORN (Corn) Subscribers: Inside day

SGG (Sugar) Subscribers: Watch your video on the weekly channel that has to clear once and for all

Bye for Now!