Markets started the week on a strong note Monday and it was the Nasdaq which again acted as the leader rising .6% (the index is looking for an 8th consecutive weekly gain). The S&P 500 rose .3% and the Russell 2000 rose by 1%. Investors may be starting to feel FOMO and gains seem to be accelerating at a rapid pace. The benchmarks had the feeling of a risk on flavor with the materials group showing muscle today. The chemical names have been gaining steam and lets remember a good portion of XOM’s recent earnings came not from energy but its chemicals division. Steel had a powerful day with letter X higher by almost 6%. The stock has seen some big volatility as of late losing ground everyday last week and falling more than 20%. Keep in mind it put up a weekly advance of 29.9% ending 7/29. A chart that is displaying a bit more tighter trade, which is bullish is TS. Below is the chart and precisely how it was profiled in our Tuesday 8/9 Game Plan. The stock is now 3% above its 50 day SMA and now targeting a double bottom trigger of 29.17. Becoming a common theme rounding out the bottom two groups Monday were the only sectors to lose ground, the staples and the utilities. The XLU broke below a bear flag today and is nearing the round 50 number. It is imperative that it reclaim its 50 day SMA in quick fashion as todays marks the seventh day below the important line. The ETF spent 4 days below that line in April and 6 in May before jumping back above.
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