Complete Monday Game Plan

Markets rose slightly for the week with both major benchmarks, the Nasdaq and S&P 500, recording bullish outside weeks in the process. Volume was soft Friday, but above average on a weekly basis. While the S&P 500 has dealt with its big round number of 1500 smartly, it remains to be been how the Nasdaq will deal with it own large round number of 3200. Some solid breakouts occurred, solidifying the markets benign stance. NCR took out a 3 week tight trigger of 28.44, and TWI took out a cup with handle pivot of 25.11. NTI SLM both took out flat base triggers of 27.37 and 18.09 respectively. IMAX closed two pennies below a cup with handle trigger of 25.06 on huge trade. CPB had volume confirmation today, to validate Thursday’s 37.26 flat base trigger breakout. I admit to being a cautious bull, and will not discount any of the dangers lurking out there, but I will try to point out some market positives here. We know the transports, are holding their own, but another important group is quietly climbing the sector rankings. Energy. HAL is holding its bullish gap up nicely, ATW had a bullish outside week, and APC was up 4% on the week, adding to gains since taking out a 79.03 cup with handle trigger on 1/22. Refiners are making their own noise, and will absolutely be in the sweet spot should America become energy independent in the next decade. HES PSX WNR are all digesting gains very well. Quoting the late John Templeton, “bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” I certainly am not feeling the frenzied jubilation, so count me as one who thinks this market still has some legs.