ChartSmarter Wednesday Game Plan 2/4/15

Markets continue to do what they do best, confound the most. They certainly do there job very well. Early on their seemed to be plenty of skepticism about the rallies legs. I was among them as big early moves are normally faded, but that never transpired. The Nasdaq and S&P 500 came into Tuesday down 1.3 and 1.8% respectively and todays move put them near the UNCH column. The S&P 500 rose 1.4% and the Nasdaq by 1.1%. Both benchmarks closed just above their 50 day SMAs and the S&P 500 has the look now of a good looking double bottom pattern with a pivot point of 2065. The last 6 sessions for the S&P 500 have been 3 solid closes and 3 weak finishes. Energy and materials were among the most vigorous sectors suggesting perhaps a bright future ahead for the economy. Of course odds are this is still a dead cat bounce but the jury is still out. On days like today one would prefer to see the top performing groups lifting the heavy load, like the chips or biotech. Names like AMBA, AVGO, INTC and CAVM did not really participate the way leaders should have. In the biotech space stocks like AMGN, ALKS, REGN, BMRN, ILMN and VRTX watched form the sidelines. Below we take a closer look at BMRN which has had some takeover chatter in recent months.