Markets once again displayed bullish action on Tuesday as they shrugged off early losses near the 1% range. The Nasdaq and S&P 500 which we follow more than the old, stodgy Dow did both finish underwater but well off the lows around .3%. They two aforementioned benchmarks bounced almost precisely off their round numbers of 4600 and 2000. The indexes continue to ignore the normally negative implications for now of the V shaped base. Often they fail as those type of shape bases are failure prone. The Nasdaq looks poised, if it remains on its current course, to record its third straight double digit yearly return. In 2012 it advanced 15.9% and 2013 achieved a move higher of 38.3%. Tuesday winning sector was the consumer staples group. Energy and materials were the laggards with both suggesting some either economic weakness, or a tax cut to the consumer, depending if you are an optimist or pessimist. The staples ETF XLP’s largest component is PG, and that name is one an 8 day winning streak and has been acting brilliantly since taking out a cup base pivot point of 85.92 on 10/27. That base was almost a year long, (began the week ending 11/29/13) and the lengthier the bases the more they are primed for success. Keep in mind, historically speaking equities that trade above 90 have a strong tendency to trade above par. PG is well on its way and as you are compensated with a dividend yield of 2.9% it may be well worth the wait.

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