Mish’s Daily: Economic Modern Family-Granny Did It! Retail Rallies

1 week ago 83 views 6 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Economic Modern Family-Granny Did It! Retail Rallies

Written by Michele ‘Mish’ Schneider

How long have we talked about the massive nearly 11-month price consolidation in our dear Granny Retail XRT?

What we waited for was a weekly close over 79.20, a level we have not seen since February 2022.

The Family, catching dollars as they fall from the trees, is now hoping that this trend continues.

Note-Bitcoin is not in this picture, but he is the MAN, making it rain!

Now, with this technical breakout in XRT, the risk is obvious.

Either Granny follows through and begins the journey back towards 90 immediately, or we see yet another failure and a run for the exits.

Remember, XRT remains an overall underperformer in an economy that needs the consumer.

And given high interest rates, a strong dollar and inflation on the rise again, we really cannot tell how long this run will last.

Granddad Russell 2000 IWM, did well this past week.

IWM held critical weekly support at 227, and now looks poised for a run to new highs. However, on the sobering side of the charts, this past week was only an inside week to the one prior.

We must watch the range from 227-243 to reconcile.

Brother Biotechnology IBB turned back around. While the monthly chart never failed a key support level, it got a bit scary on the weekly chart.

Now, back over the 200-week moving average (green line), we are watching for follow through this week.

Sister Semiconductors SMH basically, stayed in the game neither rallying or falling much.

That’s just fine by the Family as she has had her day in the sun. Now, for a broader market rally and a healthier outlook for the economy, we look to XRT IWM and…

Transportation IYT continues to look like more upside is on the way. In fact, this past week was a new ALL-TIME high close for this ETF.

Bitcoin (daily chart) shook the tree.

That’s it-all I got to say. Except this-make sure you lock in money and keep a trailing stop.

Finally, Regional Banks KRE also did well, clearing some distance over the key 65 level or the level that KRE broke down from in March 2023.

That seems like a distant memory.

As we head into Thanksgiving and Black Friday, keep watching Granny.

I created the Economic Modern Family as a US centric visual way to assess the sentiment on the economy.

Right now, hope springs eternal.

Have a listen to the podcast I did with Financial Sense-action packed!

Educational purposes only, not official trading advice.

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