ChartSmarter Monday Game Plan 12/8/14

Markets both finished ahead Friday and the S&P 500 managed to extend its winning streak to seven consecutive, its longest of 2014 (it did record an 8 week winning streak between the weeks ending 10/11/13-11/29/13). For the week it gained .4% and YTD the benchmark is higher by 12.3%. The Nasdaq fell .2% for the week unable to match the S&P 500’s streak, but the weekly move should be considered bullish. Notice how it ended the week right near the top of the weekly range, as it has now for an 8th consecutive week starting with the week ending 10/17. A sector that continues to show muscle that we are keeping a close eye on is the semiconductors. The SMH has one upped the S&P 500 with an 8th consecutive weekly gain beginning with the week ending 10/17’s impressive reversal rising almost 3%. The most impressive move of the week came from AVGO which rose 8.3% on Thursday after a well delivered earnings report. Below is a chart that was in our Wednesday Game Plan from 11/12 with an 88.02 double bottom with handle pattern. It is now 16 handles above that highlighted entry and just above the round par figure. Any opportunity to purchase AVGO at that 100 level should be considered a gift. Although we would always prefer to buy strength there are some other names playing catch up in the space to watch. SIMO rose every day this past week rising 8.2%. It reclaimed its 50 day SMA Friday jumping more than 5%. It is now working on a double bottom base with a 28.20 pivot point in its view.