When I begin to write the Daily giggling at the photo, I know that at the very least, I have a funny take on a serious event.
The number of folks, including myself at times, that have poured excrement on this rally.
Regardless of what anybody thinks or says, the Russell 2000 and NASDAQ made new all-time highs.
The Dow Jones Industrial Average cleared the terror zone of 25,000.
The clean-up crew came in and swept up the shorts in the financial stocks along with Boeing and most impressively, in Tesla (up $27.00 today).
Now, I’m not advocating that one should buy at this point with wild abandon.
I still believe, corporations flushed with cash buying back their own stocks, have a lot to do with this current rally.
Yet, as one who remains a devotee to the Modern Family..
and the notion of an overheated economy..
which, talk about a cleanup crew, the Fed will have to deal with..
let’s just say…
If you do get long now..
Be responsible and clean up after yourself.
The Modern Family, throughout every correction, has held a bullish bias on the weekly charts.
No surprise then, we have Granny Retail doing a lot better.
Semiconductors are nearing the highs. Regional Banks are anticipating higher interest rates.
And, Biotechnology is atttracting a new round of speculators.
Left out in the cold on the Daily chart (but not the weekly), is Transportation.
Which brings me back to shoveling poop.
Today, IYT, my go-to ETF for Transportation, seemed well, a little constipated.
What that typically means, is it needs more fiber.
If I put a voice to Tran, she would be saying, “I’m impressed with today’s action, but not yet 100% convinced.”
To me, there’s logic for IYT’s hesitation.
Economic statistics were mixed today: the US is exporting more goods, yet, productivity is down.
The Fed will have to weigh which stat receives the greater attention when they meet next week.
Keep in mind, all is good if the Fed raises rates gradually.
Also keep in mind, that Transportation represents the health of the economy as much as the Russells do.
A move in IYT over 197 will help. A move under 192.98 will hurt.
Incidentally, since publishing the Daily on Uranium (URA), it has risen by about 7%.
Speaking of cleaning up poop…
S&P 500 (SPY) 275 now closer support. Resistance 279-280.40.
Russell 2000 (IWM) 168 still the target if holds
Dow (DIA) 250 cleared so now it becomes support.
Nasdaq (QQQ) 175.21 now pivotal support.