Markets concluded 2013 on a fine note Tuesday with both the Nasdaq and S&P 500 going out on their highs. The Nasdaq performed better as it did most of the year with a .5% gain, compared to the S&P 500’s .4% move. It was a year to remember for the benchmarks as the Nasdaq put up an impressive 38.3% score, and the S&P 500 29.6%. Indexes remain very healthy from a technical standpoint, and have continued to improve since the very impressive outside days recorded on 12/18 as the Fed announced slight tapering, seemingly catching many off guard. Breadth and good moves from leading stocks have emerged recently as well, lending credence to the big annual moves. Friday alone on the NYSE saw 260 new 52 week highs to 1 new 52 week low. The Nasdaq came in at 210 to 15. Leading sectors going into 2014 include the same ones that have been strong for months, like internet, aerospace, banks and industrials. Will they continue to show fine form, or will we encounter some healthy rotation from the semiconductor, retail, and housing group? The XHB has come to life and currently trades above its long cup base trigger of 32.79 taken out on 12/23. The XRT trades just below a nice tight flat base pivot point of 89.05. Semiconductors are shows signs of life too with the SMH acting well, but it is giving me some hesitation as the chart is sporting a bearish falling wedge pattern. Look within the group to find small gems that we have discussed recently like an NXPI AMBA. New Years Day is a great time to reflect on the years past trades and learn what you did right and of course wrong. If you do not presently use a trade journal I would strongly advise making that a resolution for 2014. I wish each and everyone of you a healthy and prosperous 2014 in that order.
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