ChartSmarter Thursday Game Plan 5/29/14

Markets keep continuing their bullish ways as the major averages scored very small gains. The Nasdaq put in a pitch for MVP today as the benchmark recovered from a .5% loss in the late morning hours to briefly go positive, only to fall back lower by .3%. The S&P 500 put in a third consecutive close above the round 1900 handle. The bulls would love to see some consolidation right here as the S&P 500 is up 9 of the last 13 sessions. Groups that achieved the best gains Wednesday were the utilities, not the flashiest of sectors. Keep in mind however that even these slugs of slow moving stocks put in some big volatility recently. The XLU, before this last weeks 1.4% gain, had endured a heavy volume 4 week losing streak. Many names in the group had sliced their 50 day SMAs in heavy volume, bearish tendencies, but since have reclaimed them. Always best to consult with best in breed charts like an SRE. Look for the stock to put in a CLOSE above the big round par number. It has only done so once before on 5/7. Other industries acting very well are the defensive tobacco names. Taking a look at the weekly chart of PM, one can see how it has advanced 9 of the last 10 weeks, and is up 1% this week so far too. PM’s stock may not be the most racy, but its 4.3% dividend yield is very alluring. If not for MO’s one penny weekly loss, it would have been a 10 week winning streak. I can give you a name that IS up 10 weeks straight and seems headed for the round par figure. TRV. Buy relative strength.