ChartSmarter Friday Game Plan 11/7/14

Markets overcame modest deficits early on to go out on highs for the session. Classic bull market behavior. Both the Nasdaq and S&P 500 rose .4% and going into Friday are up .6% for the week, looking for their third consecutive weekly advances. The Nasdaq bounced right near its 4600 figure for the second time in 3 sessions. Earnings are in full swing and some notable moves ensued. WFM blasted higher by 12% reclaiming its 200 day SMA and recouped its 200 day SMA for the first time in 2014. We are big proponents of the round numbers theory and the 40 handle played a role with WFM. Seven times since August the stock traded above it only to be pushed back below by the close. Todays blowout may have caught some shorts off guard too as it lost value each of the first three times it reported this year. WFM dropped 2.2, 18.8 and 7.2% on 7/31, 5/7 and 2/13. QCOM has become reliable in missing earnings and no one most likely was surprised by its 8.6% fall. It was it 3rd consecutive miss, shrinking 6.6 and 3.5% on 7/24 and 4/24 too. ANN a former favorite retail play of ours, complained of a challenging environment yet still rose 2.5% on huge trade after falling below the 35 handle early. Notice how ANN did that and found support on 3/14 and 8/7 as well. On 3/14 it also reported earnings and recorded a huge reversal and finished almost precisely at the same price ANN did today. ANN not acting so raggedy anymore, pun intended.