Market Analysis for Trading on 6/11/2014

Mish Schneider | June 10, 2014

Not the first time we have seen a correction through time rather than price in the overall market. That scenario generally follows a low volume environment exactly as the one we have been in currently-active investors and HFTs main participants with little institutional and long term equity holders.

For us active folks, these scenarios lend themselves to A) choppy markets B) good riddance to weaker longs with tighter stops C) opportunities to find short positions as some hedge D) time to cherry pick instruments that are riding a volume wave and good technical pattern

No, that is not a multiple choice question, rather, correct answer: all of the above!

Personally, this is one of my favorite times in the market-nothing happening to fear a reversal of trend, time to think about what to buy during the correction that affords the best risk/reward and finally, cleaning up the model portfolio of trades that could keep one up at night because with the rally they did not go deep in the money, nor hit 1-2 profit targets along the way.

S&P 500 (SPY) Day 11 and counting of the breakaway gap. Volume super low Subscribers: Negative Pivots in all except QQQs

Russell 2000 (IWM) Inside day which proves my time correction point

Dow (DIA) Holding the Friday breakaway gap

Nasdaq (QQQ) Resting and holding with an inside day

XLF (Financials) Another healthy inside day setup

KRE (Regional Banks) Healthy inside day

SMH (Semiconductors) that inverted hammer candle meant nothing after all-readers: the lesson is always look for a second day confirmation

IBB (Biotechnology) Over 250 next stop around 270 I gather

XRT (Retail) When a former vulnerable instrument hits resistance and barely retreats-excellent sign!

IYR (Real Estate) Failed the fast moving average which most likely is a result of the firming rates

ITB (US Home Construction) Similar to XRT, performed well with an inside day

GLD Acted well in face of firmer rates-inflation fears?

XME (S&P Metals & Mining) Subscribers: Good digestion above the 200 DMA

XLE (Energy) Today was a good time to take some profits in this group

FCG (First Trust ISE Reserve NatGas) 22.30 support with another good looking chart if clears 2014 highs

TAN (Guggenheim Solar Energy) 6 days of compression and worth watching

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs and there she is-second time under the 50 DMA this year-has to confirm

PHO (Power Shares Water Resources) 27.23 2014 high

UUP (Dollar Bull) So ready to clear the 200 DMA now

EEM (Emerging Markets) Breakaway gap follow through yet again

IFN (India Fund Inc.) Parabolic mode

FXI (China Large Cap Fund) New high close for 2014

BAL (Cotton) Subscribers: Possible slingshot low

Bye for Now!