Market Analysis for Trading on 6/18/2014

Mish Schneider | June 17, 2014

Oodles of nothing sprinkled with several victories in the market on Tuesday. Solars, includingTesla (TSLA)-kudos to Elon Musk, were victorious again. Green Mountain Coffee (GMCR) andNeflix (NFLX) had big moves.

The Russell 2000s, featured in last night’s daily, delivered. Now, 117.48, June 9th high, sits there as either the next launch pad to clear from or excellent resistance to be respected.

I try to be one step ahead of the sector and country rotations, giving you the benefit (hopefully) of my thoughts. Solar I was extremely forthright about. Now, I look to China.Everything China-the ETF, their major momentum stocks and instruments that reflect their consumerism.

Also, with FED day Wednesday, the next direction of interest rates should set a major tone and trigger a domino effect. If you check archives of my daily, I wrote extensively about therelationship between US rates, dollar and China about a month ago.

As we head into the second half of 2014, your trading plan should consider what could be the nextparadigm shift.

S&P 500 (SPY) Kind of a strange bear [pennant forming unless it clears and holds over Tuesday highs Subscribers: Positive Pivots in all

Russell 2000 (IWM) Slope in 50 DMA getting better with today’s high a really important point to clear for confidence

Dow (DIA) Has to clear 168.10 otherwise under 167 trouble

Nasdaq (QQQ) Hovering around the 10 DMA and has to clear above 92.80 or looks vulnerable under 91.75

XLF (Financials) Big move here which reflects anticipation of a sponger dollar, higher rates I figure

SMH (Semiconductors) Crazy thing-it’s not overbought!

IYT (Transportation) Looks vulnerable unless it really moves up over 145.60

IBB (Biotechnology) Over 250 next stop around 270

XRT (Retail) “Good end of day move and worth watching Tuesday” The advice I give-good day now has to clear 86.43

ITB (US Home Construction) Like this over 24.25

GLD If no fear, GLD still in a bear phase

USO (US Oil Fund) Maybe a topping candle if confirms

OIH (Oil Services) Sideways near the highs has been powerful when busts out

XLE (Energy) Have you hear the one about what happens when you cross semiconductors with energy-you get a TAN!

FCG (First Trust ISE Reserve NatGas) Sideways near the highs

TAN (Guggenheim Solar Energy) Love child of XLE and SMH

TBT (Ultrashort Lehman 20+ Year Treasuries) TLT stays under the 50 DMA now, think that’s it-bottom is in

PHO (Power Shares Water Resources) 27.23 2014 high

FXI (China Large Cap Fund) Weekly close over 39.14 huge! Subscribers: URA 2 inside days and big eyes there

Bye for Now!