ChartSmarter Tuesday Game Plan 9/30/14

Markets recorded a topsy turvy session Monday as the major indexes started the day down 1%, and the Nasdaq did manage to make it back to positive territory briefly before falling .1%. The S&P 500 lost .25%. The Nasdaq did lose 1% or more the last 2 Mondays prior to today. Both of those aforementioned indexes remain above their 50 day SMAs, and some upside volume would reassure the bulls. No major groups were able to finish in the black today although, the best sectors were defensive. The utilities, healthcare and consumer staples “performed” the best. The consumer staples ETF, the XLP is sporting a decent looking pattern. It has formed a double bottom with handle base with a pivot point of 45.83. The handle has received nice support at its 50 day SMA. The fund is up 6 of the last 8 weeks, after finding support at its 200 day SMA the week ending 8/1 when it fell 3%, a big move for the ETF. Some names in the group which avoided the selling monday and rose were ADM GIS MJN KO SYY KR MO. ADM we profiled in our Tuesday 9/2 Game Plan, and the chart below is how it was played. The stock is up 10 of the last 13 weeks and just 2% off all time highs and sports a decent dividend yield of 1.9%. MO is sitting at multi year highs and pays a 4.5% dividend yield. I am well aware of the old adage “the best defense is a good offense”. With this market we may have to flip that around.