Complete Wednesday Game Plan

Markets rebounded nicely from Monday’s light volume losses. Volume on the Nasdaq was strong. Breakouts came back today with a diverse mix of names taking out triggers on healthy trade. They included 3 week tight breakouts from NWL MSI with pivots of 23.97 and 59.58 respectively. DDS took out a 85.57 flat base pivot, and WLL a cup with handle trigger of 49.22. Perhaps the economy is getting stronger, and the GDP contraction reported last week is a one off event. If FDX has anything to say about it, its trading a 5 year highs and depending on its close Friday could complete a very bullish 3 week tight pattern. There are an abundance of other leading stocks potentially honing in on their own 3 week tight trigger pivot points, which will be discussed in the next couple paragraphs. But this is a bullish development as these stocks trade tautly, and pause for 3 consecutive weeks looking to recharge and possibly vault to new highs. The builders, which have maintained their top sector ranking for some time now, may be flashing some sell signals. The ETF XHB has been down 4 of the last 7 days in big trade, and a look at its weekly chart, shows basically no big up volume weeks since the week ending 9/14 when it advanced 6% in sizable volume. Some individual names like PHM RYL MTH LEN found support at their 50 day SMAs, but the volume on the way down was a bit heavier than what is optimal. Time to put a new IPO on your watch list to see when a pivot may develop. NCLH, Norwegian Cruise Lines.