ChartSmarter Monday Game Plan 11/23/15

Markets finished a strong week Friday with the Nasdaq rising .6% and the S&P 500 by .4%. If not for Thursdays 1 handle loss for the Nasdaq it would have gained everyday this week, the exact opposite of the prior week where it fell 5 straight. For the week the Nasdaq outperformed advancing 3.6 to the S&P 500’s 3.3% gain. The Nasdaq has now outdid the S&P 500 on a weekly basis 5 of the last 6 weeks (the lone exception was the week ending 11/13 where it fell 4.3% and the S&P 500 lost 3.6%) as groups like the internet and software shine. Chips are beginning to perk up as well. On a YTD basis the Nasdaq is well ahead with a gain 7.7 versus the 1.5% boost by the S&P 500. With Friday’s move higher for the Dow of .5%, which we rarely follow, it has moved to UNCH for 2015 and the benchmark is looking for a 7th consecutive yearly advance. Truth be told we are we are a little concerned with the recent volatility. The Nasdaq’s last 2 weeks were down 4.3 and up 3.6%. That type of behavior is indicative of topping action whereas bottoms are built in a slow, gradual fashion. Retail Friday enjoyed a rare joyous session. Earnings reactions from the likes of ANF, HIBB, ROST and FL all rose by 25, 16, 10 and 6% respectively. Others in the group gained for other reasons with NKE up 5.5% on a buyback, stock split and a dividend boost. CAB rose 10.5% as yet another sale rumor made waves. The stock has undergone some frenetic trade recently. On 10/28 it flew higher by 17.5% as Elliott Management disclosed a stake. On 11/2 it was Bass Pro Shop that casted the stock higher by 10.2% as it was suggested they would be interested in purchasing the firm. Its last 2 earnings reactions were ill received with losses of 17.2 and 11.5% on 10/22 and 7/23. Even GPS charged higher by 7.5% even after lowering guidance Friday. Below is another retail play FIT and how it was presented in last Thursdays Game Plan. It dropped nearly 5% today and sits very close to a short trigger below a bear flag trigger.