ChartSmarter Monday Game Plan 1/12/15

Markets finished the volatile week Friday with mild losses for the benchmarks. The S&P 500 lost .85% while the Nasdaq dropped .7%. Volume was subdued, just what you would like to see, and both aforementioned indexes did find precise 50 day SMA support. For the week the S&P 500 fell .6%, while the Nasdaq lost .5%. A look at both of their weekly charts must be construed as bullish as each of them ended the week well into the upper half of their weekly trading ranges. The jobs number was in focus before the open, and the numbers themselves looked good, but many were concerned about the absence of any wage growth. This could be a factor in why many retailers are closing down underperforming locations. Stocks like M, JCP, WTSL, ODP, RSH, SHLD, BKS to name a few are about to get meaner and leaner. Even in Fridays softness one could find some silver linings. Or should I say gold linings. Best in breed play GOLD jumped 8.6% this week and since the week ending 11/7/13 when it rose by 15.7% the charts complexion has taken on a bullish tone. It now rests just beneath its 200 day SMA and a move above should be bought which would put the beginnings to a deep cup base the week ending 7/11/14 at the round 90 handle. Semiconductors behaved smartly Friday on a tepid tape. Leaders in the group took charge in the top performing sector with the names AMBA AVGO CAVM NXPI all gaining more than a dollar on Friday. Below is a chart of CAVM and how it appeared in our Thursday 10/16/14 Game Plan, now up 20 handles since a buy recommendation at 42. Advances like that are often good tells going forward. Pay attention to them.