ChartSmarter Thursday Game Plan 2/13/14

Markets finished near the UNCH mark Wednesday stubborn to give back any of the recent gains. And those recent gains are impressive. The Nasdaq has recouped more than 230 handles from last weeks lows. Keep in mind that is in 6 short trading days. The S&P 500 has added 80 handles since last Wednesdays lows. It is about to test 50 day support that it climbed back above yesterday. Will it hold or was the move powered by stops being taken out as the benchmark reclaimed its key moving average? One thing is for certain and that is the lack of vigor in regards to volume participation. The adage goes price follows volume and optimally you would like to see healthy volume accompany the move higher. As another adage states though, “one can go broke on low volume” and I am fairly certain many are feeling that pain currently. Looking at the SDS a levered short S&P 500 ETF, shows just the opposite. Trade was explosive to the upside from late January into early February, and on the descent was fairly elevated, but not as robust as the move upward was. Notice how it is holding the round 30 handle as well. Another ETF that caught my eye was the value investors are seeing in corporate bonds. And could be a sign that corporations are as mean and lean as advertised after the recent recession signaling good forecasts for equities. The LQD is right back to its 115.85 flat base trigger it took out on 1/29.