ChartSmarter Thursday Game Plan 12/1/16

Markets demonstrated some mixed action Wednesday, with the Nasdaq taking it on the chin to the tune of 1.05%. It is now in the range of that double bottom breakout trigger above 5312 we spoke about yesterday. Most of the damage was done in the larger cap names with three of the four FANG names losing value today and all of the top 10 holdings in the Nasdaq 100 fell. The S&P 500 fell .3% and the Dow gained fractionally. The sector performances were bifurcated today and the winners tend to show more risk on flavor. One did not have to look very hard to determine which was the best actor as energy screamed higher by more than 5%, as many careers were made and some probably finished after a historic day for crude after many were caught on the wrong side of the trade. More evidence that growth prospects look bright were the moves in the other major S&P sectors, specifically the financials, industrials and materials. The hardest hit groups were the ones most defensive with the utilities and staples falling 3.1 and 1.6% respectively. Some healthcare names were hit hard with the likes of SRPT lower by almost 7% and has now been almost cut in half since highs made just 2 months ago. Below is the chart of VRTX which we were WRONG about from last nights Game Plan. In retrospect I should have know that it is a much better prospect of winning when you stick to stronger, best of breed names as trends are more likely to persist than reverse. Only salvation was a tight stop.