Markets rallied Wednesday as the Nasdaq was the best performer rising 1% today. After a very brief run into negative territory where the index bounced precisely off the round 4500 handle, it was off to the races. The S&P 500 was no slouch today either as it gained .8% recording a bullish outside day. Volume was not as energetic as bulls would have liked, but again price pays. The advance today was broad with every major group finishing in the green led by healthcare, courtesy of the biotech group. Major players in the group like the BIIB, GILD and CELG all rallied smartly. Other lesser know names in the group like ACOR rocketed higher by more than 28%. VRTX motored higher by 7% and is on a current 7 day winning streak. We highlighted that name recently, in last Thursdays Game Plan with a 96.50 cup with handle trigger that was taken out on 9/19 and the stock is now higher by more than 14%. Looking at the BBH, it has made an excellent recovery since the week ending 4/18, advancing 15 of the last 23 weeks. That week it gained 3.2%, recording a big intraweek reversal off the precise, round 80 handle. Speaking again of volume, during this nice winning streak is has been practically non existent. Even today when it took out a 108.10 cup with high handle trigger daily volume was below its normal daily average. A name where volume did come into play today was lightly followed AGIO. It took out a long ascending triangle pattern which aligned with the round 50 handle, adding significance. This weeks 2.7% gain after the prior weeks 10.6% jump has to be respected. Here is how we presented the idea in our Game Plan last Friday.
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