Markets fell for a fourth consecutive session, but a modest last hour rally off a double bottom on the intraday with the 1130am timeframe, could perhaps be a good sign. The Nasdaq for one found a bid at its 200 day SMA which just recently began to slope to the upside. Additionally it recorded a spinning top candle, which after a 170 handle move lower could be a sign that this selling could be ready to abate. For a change the tech rich index “outperformed” the Nasdaq fell .1% compared to the S&P 500’s .2% decline. With all the talk of Brexit, lets pay attention to what really matters, and that is the price of oil which is not a coincidence that crude, like the averages lost ground for a 4th consecutive session. At the expense of sounding like a broken record it was the utilities and staples sectors that gained the most ground Tuesday with moves higher of .5 and .3% respectively. Technology via the XLK (was surprised to see both VZ and T in the top 10 holdings and accounting for more than 10% of the ETF) rounded out the top 3 gainers with an advance of .3%. As far as making money goes lets remember there is no such thing as boring or defensive. A 5 handle gain in food stock counts the same for a 5 dollar move in a semiconductor play. Below is a good example of a global consumer play we profiled in our Wednesday 6/8 Game Plan. It blasted above the round 120 handle which happened to be the trigger in a bull flag pattern to hit all time highs last Thursday and has since retested that breakout this week and held, a very good sign.
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