Markets rose Friday to finish out a decent week. It was the Nasdaq that led the way once again, and as we sound like broken records saying that now, it should be music to investors ears. The tech heavy index is a barometer of how risk averse or not market participants are. It was the second consecutive week that it outclassed the S&P 500 as it rose this week by 1% while the S&P 500 FELL .1% recording a bearish harami weekly candle (last week the Nasdaq rose 2.6% to the S&P 500’s 1.7%). The Nasdaq is now higher 8 of the last 9 sessions and it is making a bullish habit of CLOSING near sessions highs. I am purely an equity guy but the saying on Wall Street is to pay attention to the credit markets as they are much larger and often are a good forecaster of future. If that is the case the fact that the 10 yr yield, $TNX, is finding comfort currently at its rising 50 day SMA is a benign sign (bond prices and yields trade in opposite directions). As there was bifurcating action on a weekly basis between the Nasdaq and S&P 500 it was among sectors too as energy lagged in a big way with the XLE down 2%. The ETF is lower 4 of the last 5 weeks yet is still above its 50 day SMA and remains just 5% below 52 week highs. It has been a little perplexing as the dollar has been receding as well. On the upside it was the cyclicals with the XLY higher by .8% being the top performing group. For all the hoopla surrounding healthcare this week the XLV CLOSED basically UNCH (notice how the very round 70 number held on Wednesday after the Trump news conference). Talking about the round numbers below is the chart of TECK and how it was presented in our Friday Game Plan. The very round 20 number held not only in the last couple weeks but way back in March ’14 and June-July ’17. This week is soared 17.4% and the trigger was hit today and now look to add above the cup base pivot of 26.70.
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