ChartSmarter Wednesday Game Plan 2/12/14

Markets rejoiced Tuesday as new Fed chair Yellen, had no major surprises in testimony. The S&P 500 reclaimed its 50 day SMA today and its 6th straight positive close finishing near the intraday highs. Energy names are represented more in the benchmark and the XLE is looking for a second consecutive week higher after losing ground for 5 straight weeks. Volume on the ETF is lacking on the rebound and look to see how it reacts to a 50 day test about a handle higher. The leading Nasdaq which recouped its 50 day SMA last Friday, made it into positive territory for the year, up .4%. Some of the biggest subsectors within tech that are performing very well include semiconductors, software and internet names. Looking first at the SMH it has performed beautifully since taking out a 39.83 flat base trigger on 9/17/13. The breakout was retested on 10/8-9 and held. The 50 day was supportive along the way too and on 2/4-5 the round 40 handle held strong. Names like NXPI XLNX AVGO MU have shined. Examining other ETFs in the previously mentioned sectors the internet and software funds are slightly illiquid but demonstrate the strength. The internet ETF PNQI trades just beneath a 69.79 flat base trigger. A breakout would correspond with an all time high. FB GOOG FFIV had led. The software ETF IGV is nearing its own 84.57 flat base pivot point and has risen for 6 straight sessions. New names like CSOD DATA SPLK have held the group aloft. Always look for best of breed names within theses groups for the most lucrative opportunities.