ChartSmarter Thursday Game Plan 4/7/16

Markets sprung higher Wednesday with the Nasdaq taking charge gaining 1.6% compared with the S&P 500’s respectable 1% advance. The Nasdaq was emboldened by the biotech group which has been on fire, and is on pace to test the round 5000 figure we have been discussing. The XBI was higher by 6.2% and this week thus far is up a even better 8.3%. Energy bursted higher helping the benchmarks as well and homebuilders kicked in some gains making it a nice trifecta for the indexes. Looking over many names in the financial space I was surprised to see the run in AB as it has gained 35% during a 6 of 7 week up streak. It is trading right at its 200 day SMA and I know investors are seeking yield but its 10% plus dividend seems risky. Perhaps contributing to its ascent has been an article I read recently that while many banks are shunning lending to oil names AB is embracing it. A hazardous or brilliant play? The way the stock has been moving maybe it is the latter and a big bet on crude. Getting back to the building names, AYI a best in breed homebuilder periphery play powered higher by 13% after a very well received earnings report today. One can also look at the charts of a TTS or LZB to see the breadth in the group. TTS is building the right side of a cup base and is looking at a potential 6 week winning streak, up better than 2% this week after the prior weeks 7% rise. LZB has been acting anything but lazy as it rests along its 200 day SMA after a huge weekly gain of 21.7% ending 2/19. Their was a casualty in the semi space with CREE crumbling following a weaker than expected third quarter results. Below is how we presented the idea in our Friday 4/1 Game Plan.