Complete Monday Game Plan

Markets ended the holiday shortened week Thursday in good spirits. For the week both the Nasdaq and S&P 500 advanced about 3/4ths of 1%. As the rally evolves, the diversity of sectors supporting it continues to grow. This week the biotechs joined the fray as the IBB broke out Thursday from a 157.35 3 week tight pattern, with volume confirmation coming Thursday. BIIB received an approval this week for an MS drug, propelling the group higher. It hit an all time high Friday as did CELG AMGN GILD. GILD took out a 46.47 3 week tight trigger Wednesday, and had solid follow through Thursday. Of course the transports are firing on all cylinders. The rails, are chugging along, even with the wounded FDX. Its survival of the fittest in the stock market too. CP in the rail group broke out from a 3 week tight trigger of 128.90 Friday. The airlines are flying. LUV caught my eye while charting, as it is now up 4 consecutive weeks, and 15% in the process. Its chart is trying to emulate undisputed leader ALK. ALK hit another all time high Friday and now is up almost 50% YTD. Even the energy sector silently moving up in sector strength. And more impressively is the fact its doing it in the headwind of an empowered greenback. Stick with the leaders like APC COG RRC NBL FTI. On the downside, homebuilders are starting to show signs of fragility. Names like MDC BZH TOL MHO, are all residing below their 50 day SMAs. Even mobile homes, beginning to show some cracks. WGO lost 5.5% Friday, following an ill received earnings report. It did find solid 50 day SMA support however. As for the Nasdaq, a potential pitfall could be a possible 50 day SMA breach by GOOG. The stock does comprise 4.4% of the Nasdaq, and is nearing a test of its 50 day at 788. Of course the Nasdaq has not been deterred by AAPL’s dismal action. Can the tech index continue to ascend, with its two biggest stocks operating unsatisfactorily? There does seem to be a persisting notion of a coming correction, keeping many on the sidelines, including myself recently. I entered on a small scale this week, not before dusting off the buy button on my keyboard, due to difficulty locating it. Fighting the tape is a frivolous game.