Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Mish’s Daily: Granny Retail and Granddad Russell Dish Post-FOMC

by admin July 29, 2022
July 29, 2022
Mish’s Daily: Granny Retail and Granddad Russell Dish Post-FOMC

Powell and crew raised the rates by .75 BPS in an attempt to continue the fight against inflation. He even said, “Another unusually large increase in rates could be appropriate, it depends on data.” However, the market heard something different.

Sure, we rallied pre-FOMC and continued to rally thereafter. The market at this point hears that Powell didn’t go 1.00 BPS and, ergo, is more concerned about the economy rather than inflation. In other words, no worries on recession, but, then again, no worries on inflation either.

So what do our very sane and very old Granddad and Grandma have to dish about?

The Russell 2000 (IWM) closed up 2.25%. Retail (XRT) closed up 2.52%. On the chart, IWM ran into resistance while remaining above the 200-week moving average. Could IWM go up more?

Yes if, first, junk bonds remain in risk on mode; second, if IWM can hold above 180; third, if IWM can close the week out over 183.30; and finally, if the huge drop in the 20+ year long bonds do not ultimately make this day a one-day wonder.

Granny Retail has bigger issues. Firstly, on the chart, XRT is under the 50-DMA and in a bearish phase. Secondly, XRT is just barely above the 200-WMA at 60.90. Also, if the Fed is perceived as not able to do the hard rate raise and control inflation, the consumer will continue to feel the pinch of higher prices on real goods.

Sure, growth stocks are enjoying a move up. How many times have we seen growth stocks outperform, only to look back and realize that Granny and Gramps are not following the bliss? We need real growth, not growth based on a $52 billion boost to the US semiconductor industry. So, we need to see XRT and IWM stay in the game.

Perhaps the rise in durable goods orders and wholesale inventories defies recession fears. It’s possible, but, if IWM and XRT cannot move up from here, it will be because:

A) Inflation is just getting started and the Fed is way too lateB) We really are in a stagflation environment, meaning stagnating economy and no real growth in sight. Especially without the Fed juice.

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

In this video, Mish, along with the Bitwise CEO, discusses whether Fed can control inflation, the future of the rates, bitcoin, equities and commodities.

Read this week’s article from Mish for CMC Markets, titled “A Trendsetting Week in the Markets (Part 1 of 2)“.

In this interview by Dale Pinkert during the F.A.C.E. seminar, Mish examines different sectors using the 50- and 200-week moving averages.

Mish presents “Working as a Trader” on Business First AM.

Also from Business First AM, Mish explains what to look for before putting cash back into the market.

ETF Summary

S&P 500 (SPY): 403 big resistanceRussell 2000 (IWM): 182.50-183.50 point needs to clear 180 to holdDow (DIA): 322-323 resistance, 316 support Nasdaq (QQQ): 308 big resistance, 293 support keyKRE (Regional Banks): 60 key support; meh performanceSMH (Semiconductors): 230 now pivotalIYT (Transportation): Back over the 50-DMA, now has to holdIBB (Biotechnology): Support 120, resistance 129XRT (Retail): Has work to do; starts with getting back over the 50-DMA

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

0
FacebookTwitterGoogle +Pinterest
previous post
GNG TV: Retest and Resume for New “Go” Trends
next post
Technical Analysis Apologetics

You may also like

Mish’s Daily: The Four Indices — Where Each...

October 18, 2022

Oil Prices Soar Amid Middle East Tensions –...

October 8, 2024

Why the MACD Pinch Play is So Valuable

August 3, 2023

Bank Earnings: JP Morgan vs. Goldman Sachs

July 10, 2023

Top Ten Charts for August: Two Magnificent 7...

August 19, 2024

Weekend Daily: Stock Market Outlook: New Year, New...

January 14, 2023

Gold’s Message for Crude Oil

November 4, 2022

DP Trading Room: Dividend Investing

August 29, 2022

Equities Set New Highs As Growth Sectors Drive...

July 8, 2024

Price Reversals from Recent Highs in Stocks

February 7, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved