Complete Tuesday Game Plan 10/29/13

Markets traded in a very tight range Monday to kick off the new week. Both the S&P 500 and Nasdaq basically finished UNCH which has to be construed as bullish action. The Nasdaq since taking out the 3900 level on 10/18 has tested that level every session except the last 2 and held. Today’s 20 point intraday range was the tautest in sometime. Lets see how the biggest component in the index, AAPL at 7%, trades tomorrow after reporting earnings after the close. After hours it was volatile. Perhaps a nice showing will get the tech heavy benchmark moving toward the 4000 handle this week. Four of the top five components have reported recently and all have behaved very nicely afterwards. GOOG up 14%, AMZN 10% and MSFT up 6%. With those types of performances I am surprised the Nasdaq has not moved much. Of course it is still up 30% YTD. The S&P 500 hit another all time high as it has closed up 11 of the last 13 sessions, many in solid trade. Focusing on the Nasdaq more since that is the leading benchmark, some of the better performing sub sectors in the group are showing sign of thawing. Internet plays like AKAM down 12% last week, BITA lower by 11% the last 2 sessions do not inspire confidence. Software names have been firm this year, but some have not got the strength memo lately. QLIK a name profiled as a short recently in the newsletter down 20% from last week. Other names in the group having the bears salivate are CVLT N NQ. At the expense of sounding like a Debbie Downer the SDS is at support in a bullish rising wedge pattern. Perhaps it just means we continue to melt up.