ChartSmarter Friday Game Plan 10/30/15

Markets remained somewhat resilient Thursday as the S&P 500 finished close to the UNCH line and the Nasdaq hit by weakness in semiconductors and healthcare dropped .4%. Despite the softness in those sectors, on its daily chart one can easily view the very bullish harami with a small real body after yesterdays gain of 1.3% in solid volume. The case can be made that the tech benchmark is building the right side of a cup base. All time highs are nearly 3% away and the index is looking at a 5th straight weekly advance, up .9% heading into Friday. As of todays close it is in the upper half of the weekly range, and the previous four have all CLOSED near their tops. The S&P 500 is looking at its 5th consecutive weekly gain as well and it remains just 2% of its all time highs and a cup base pivot of 2133. NXPI earnings last night created the frenzy which sent semiconductor shares lower. It was interesting to see how it affected the overall group as some acted much better than others. AMBA, a smelly laggard off more than 60% from recent 52 week highs, slumped more than 10%. On the opposite end of the spectrum LRCX eked out a fractional gain and perhaps could be a good tell going forward. Of course it is merging with KLAC. Interesting is the love some retail names are beginning to attract, after a weaker than expected GDP report today. On Tuesday COH rose 4.4% its third positive reaction in its last 4 (was higher 3.2 and 6.8% on 8/4 and 1/29 too). Wednesday we had Elliott disclose a stake in CAB which subsequently jumped 17%. Today HBI jumped 15% after earnings and it was its first gain in its last 5 releases as it slipped 9.1, 6.8, 4 and 3% on 7/31, 4/24, 1/30 and 10/30/14. Someone most likely was squeezed with Thursday’s move by the “tighty whities”, pun intended. DECK after the close jumped by 12% and we take a look at the chart below.