Five Themes to Trade in the Market

Without a doubt, our Economic Modern Family continues to give us reasons for concern. To end the week, Regional Banks (KRE), Transportation (IYT) and the Russell 2000 (IWM) not only all failed to clear their upper ranges and moving averages, but they all also sold off to close beneath their fast or 10-day moving averages.

However, the family does give us mixed signals. Granny Retail (XRT) held the 200-DMA. Biotechnology (IBB) traded to and closed at new all-time highs! Sister Semiconductors (SMH), is holding over 150, also close to possibly pushing higher.

Sounds confusing, right?

So what I have done for you is create a very in-depth look at five different themes and the stocks that are setting up in each theme. Some of the stocks are momentum plays, while others are more value plays.

In today’s episode of StockCharts TV’s Mish’s Market Minute, using two of MarketGauge’s proprietary indicators (Triple Play and Real Motion), I go through 18 stock picks in five different themes:

  • Chinese Companies
  • Solar Stocks
  • Fuel Cells
  • Food Commodities
  • Foreign ETFS

I dissect them and give you specific entries, risk points and targets. There is literally something for everyone and every kind of trader and investor.

As mentioned in the video, the macro of the overall market remains very much a consideration. Hence, some picks will go counter while most will have an impact from what happens at this very critical juncture in the market.

  • S&P 500 (SPY): 312.50 pivotal. 320 big resistance, 302 support
  • Russell 2000 (IWM): 147.20 resistance with support at 141
  • Dow (DIA): 260 support, 263 resistance
  • Nasdaq (QQQ): 240-247.82 range
  • KRE (Regional Banks): 41.65 resistance, 40.00 pivotal support
  • SMH (Semiconductors): Inside weeks – 139.78 last week’s low-155 resistance
  • IYT (Transportation): 158 support, 168 resistance
  • IBB (Biotechnology): Finally cleared 136 – and had a new all-time high close
  • XRT (Retail): 200-DMA 40.50 support to hold, 43.50 resistance
  • Volatility Index (VXX): 34.50-38.50 range

Mish Schneider

Director of Trading Research and Education