Complete Monday Game Plan

Markets closed out the week Friday with decent gains, but were not able to finish the week higher. That snapped a 3 week winning streak for both the Nasdaq and S&P 500. The Nasdaq on a YTD basis is still trailing the S&P 500 by almost 2%, as its is up 7.5%, compared to the S&P 500’S 9.2%. A look on the weekly charts of both benchmarks paints a positive picture as both closed near the very top of their intra week ranges. The Nasdaq’s weekly chart also has traded very tightly with the last 3 weeks closing prices within 5 handles of each other. A peek at the sectors still leading the way include transports, banks, and builders. The transports held firm despite a depressing week for FDX which plunged almost 10% on the week following an ill received earnings report. Rival UPS delivered, pun intended, a much better week falling less than 1%, and finding solid 50 day SMA support Thursday. The financials measured by the the XLF, up almost 11% this year, and just 1.6% off its 52 week high, are potentially starting to show some cracks. GS lost its 50 day SMA Thursday, on light volume, losing more than 5% for the week. It needs to get back above 150 soon. JPM surrendered about half of what GS did on the week, and amid all the London Whale hoopla, managed to find respectable support at its 50 day SMA this week. RJF reversed 4% this week, recording a bearish outside week after hitting an all time high. Are some of these small chinks, going to lead the way to some rotation from some important lagging groups like energy and semiconductors? Perhaps the defensive food groups outperformance is trying to signal to investors that they may want to take a diet, and cut back on their stock holdings. The strength in names like CPB GIS CAG has been delicious to shareholders.