Mish’s Daily: Small Caps Clear a Path for Higher Prices
Mish’s Daily: Small Caps Clear a Path for Higher Prices
Written by Michele ‘Mish’ Schneider
Last night after the sell off, we had this to say:
“For junk bonds and small caps, the next day or two will be very telling on whether this a buyable dip, or the start of a bigger correction.”
We also wrote 4 scenarios that could help you decide next moves:
- 1. HYG holds these lows and works its way back to 77.00 or the 50-DMA. A close above would be considered strong. (NOT QUITE BUT CLOSE)
- 2. A move under today’s lows in HYG, regardless of what IWM is doing, we would think a bigger correction is coming. (DID NOT HAPPEN)
- 3. IWM, which failed to hold above the January calendar range high and is not that far under the 50-DMA, clears and holds back above 195. Even if HYG just consolidates, we would consider this a positive for the small caps and market. (YAY-THAT HAPPENED)
- 4. IWM cannot clear back above 195 and confirms a caution phase, which will lead us to wait for a test of 185 before buying anything new. (HAPPY VALENTINE’S DAY-IWM HELD)
Furthermore, we noted that Granny Retail XRT did better yesterday and Transportation, IYT held 266. Granny Retail rose about 1.5%.
IYT ran up 3.5%-hard to argue with strong transports!
As you can see from the chart, Granddad Russell IWM did its job for today.
Please have a listen to the Final Bar with Dave Keller to hear our thoughts on these relationships and what has to happen from here. Find Final Bar https://www.youtube.com/@StockChartsTV/videos to hear Dave’s wrap up and Mish’s thoughts on these four key instruments.
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Mish in the Media
Final Bar with Dave Keller StockChartsTV 02-14-24
Business First AM Check out Mish’s newest stock pick to keep on your radar 02-13-24
BNN Bloomberg Valentines Day-What stocks do you love, want to marry, regret not holding 02-12-24
Financial Sense with Jim Pupluva Credit card balances for US consumers are climbing. Is this yet a concern for the market and economic outlook? 02-07-24
The Money Life with Chuck Jaffee Where Mish sees the markets going in the short and longer term 2024 podcast 02-06-24
Benzinga Morning Pre Market Mish sits with the team to discuss the recent job report and how a healthy economy is not the worst thing. It just means a reset of how investors invest 02-02-24
CNA Asia First Mish’s debut talking the Fed, inflation, big tech earnings and what investors should look out for 01-31-24
Money FM 89.3 Singapore Mish on breakfast bites talking earnings and interest rates-plus her made up ETF 01-31-24
Kitco News An Article with Neils Christensen on the direction for gold 01-30-24
Coming Up:
February 16 Fox Business with Charles Payne
February 21-23 The Money Show in Las Vegas
February 26 CNA Asia First TV and Radio
February 29 Yahoo Finance
February 29 Your Daily Five Stockcharts
March 6 Trader’s Summit
March 8 Schwab
Weekly: Business First AM, CMC Markets
ETF Summary
S&P 500 (SPY) 500 now the pivotal point-490 near-term support
Russell 2000 (IWM) 195 support
Dow (DIA) 385 now resistance
Nasdaq (QQQ) 430 pivotal support
Regional banks (KRE) Back to the 45-50 range
Semiconductors (SMH) 200 pivotal
Transportation (IYT 266 support. 282 the highs so far
Biotechnology (IBB) 135 pivotal
Retail (XRT) The Jan calendar range high at 73 now must hold
20240215
