Markets for the second consecutive week scored solid gains on a Monday. After last Mondays advances of 1.3 and 1.2% for the S&P 500 and Nasdaq respectively, today they moved higher by .9% and .5% for the Nasdaq and S&P 500. Today was impressive given the shrugging off the early weakness. Both aforementioned benchmarks were lower by .5% early on and each went out CLOSING near session highs and each reclaimed their 50 day SMAs. It was good to see tech outperform today and the best sectors today were healthcare, consumer discretionary and IT. The only major S&P sector today of 10 to fall was consumer discretionary. Energy continues to dominate the headlines an it seems many are attempting to call bottoms but we fell until that kind of discussion dies down the sector will continue to decay. One good sign, which can be seen as contrarian, was Warren Buffett eliminating any exposure to the group with recent filings shown him exiting NOV and PSX. No question he is one of the greatest investors of all time, but he may be losing some of his touch as his largest positions IBM and AXP are deep in correction territory. The beleaguered semiconductor group had one of its components show some glory today in IPHI. Below is the chart how it was precisely presented in last Tuesday’s Game Plan. It screamed higher by almost 11% on huge volume retaking its 50 day SMA and now watch closely as it begins to approach its cup base trigger of 27.21.
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