Mish’s Daily: One Day Doth Not a Sector Rotation Make!
Mish’s Daily: One Day Doth Not a Sector Rotation Make!
Written by Michele ‘Mish’ Schneider
Over the weekend I wrote about the Economic Modern Family.
Then Monday I focused on Biotechnology IBB, as a promising member of the Family to revive.
Today, as mentioned in several interviews yesterday, we need to see follow up by EVERYONE, and not just Sister Semiconductors SMH, who once again rocked it!
“One day doth not a rotation makes,” means that we need to see the “inside sectors” hang tough.
In other words, with the Russell 2000 IWM, Retail XRT, Regional Banks KRE and Transportation IYT closing red today, they must
- 1. Not bleed further
- 2. Find buyers down at these levels to instill confidence in the market and economy beyond the growth stocks.
Just looking at our Granddad Russell 2000 you can see that IWM has not cleared the 50-DMA (blue) yet.
IWM remains an underperformer to the benchmark.
Real Motion shows a bit of a bearish divergence.
Let’s compare this to Nvidia-the wing beneath Sister Semiconductor’s wings!
I am always asked about it, have owned it FOREVER, yet rarely post on it-NVDA.
Right now, the reversal top yielded a more than 10% correction (the norm).
It slightly underperforms the benchmark with today’s rally.
Momentum had a mean reversion and held key support.
I’d look for a close over 125.60 first.
then watch for a move back over 127, which will look better.
After technical tops, the best result is when it takes out the highs, which in this case is 140.76.
Personally, I would love to see 107 as the add spot.
And let’s face it-it has become more evident that what the rest of the economy and Family do will indeed impact NVDA and SMH-it has to.
It always does.
Educational purposes only, not official trading advice.
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Mish in the Media
Stockpick.app Where is the money-and why we love silver still 06-24-34
Business First AM More on the inside sectors and why we like South Africa ETF 06-25-24
Benzinga Pre-Market Prep Mish covers the inside sectors, what to buy and where plus some key picks 06-24-24
Schwab Network with Nicole Petallides Mish covers the Modern Family, rising electricity demand and some picks to consider 06-21-24
Singapore Breakfast Bytes Radio Mish goes through electricity demand and which commodities to watch 06-20-24
Making Money with Charles Payne Down to basics on what would sell the market off 06-19-24
Coming Up:
June 27 Live coaching
June 28 Financial Sense with Jim Pupluva
July 2 Yahoo Finance
July 9 StockchartsTV
July 16 Wealth 365
Weekly: Business First AM, stockpick.app
ETF Summary
S&P 500 (SPY) 5400 support
Russell 2000 (IWM) 197-202 tightest range to watch
Dow (DIA) 40k resistance
Nasdaq (QQQ) 474 support
Regional banks (KRE) Watching the range 45-50 CAREFULLY
Semiconductors (SMH) 260 pivotal
Transportation (IYT) 65.50 hurdle to clear 64 support to hold
Biotechnology (IBB) 140 pivotal
Retail (XRT) 74.50 support key 77 resistance to clear
iShares iBoxx Hi Yd Cor Bond ETF (HYG) This is all risk on-as long as it holds above 76.50
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