ChartSmarter Monday Game Plan 6/2/14

Markets concluded the holiday shortened week, which we know to be traditionally bullish, with more gains and for the third straight week the Nasdaq outperformed. It rose 1.4% for the week and is now higher by 1.6% YTD. The S&P 500 was no slouch either this week gaining 1.2% and has now advanced 4.1% for 2014. Some concern continues to be the underperformance of the small caps. The S&P 600 rose by just .5% on the week. Many investors believe when the vibrant small caps fail to keep pace it is a bearish sign of market divergence. Normally when money begins to pour into big cap names like the energy, auto, chemical and transport groups investors feel more defensive in nature. It can be looked at however that investors are looking for dividend yields for income in some of these names, which many are higher than treasuries. But some growth sectors are making their moves up, such as computer and semiconductors. Of course AAPL is the 800lb gorilla in that group and even with an 11 point intraday reversal still gained more than 3% for the week. SYNA put in a marvelous week up 15% and trading 1% off all time highs. Each day this week the stock closed upon its highs and look to enter with a buy stop above a cup base at 69.10. A name to watch out for in the chip group is AMBA which has failed to keep pace with the hot group. It reports on Tuesday and is still 29% from its most recent 52 week highs. Before this limp volume 3 week winning streak AMBA had lost ground 8 of the 10 prior weeks in heavier trade and it closed barely above its 50 day SMA Friday that it reclaimed this week for the first time since early March.