ChartSmarter Wednesday Game Plan 6/14/17

Markets followed through on Mondays reversal as the Nasdaq at least for today reassumed its leadership role with the tech rich benchmark rising .7%. It could certainly travel further into last Fridays ugly bearish engulfing candle. It failed to record just its second 3 session losing streak of 2017, to give an indication of how stout the rally has been. The S&P 500 added .5% and a look on its weekly chart would show very taut action, and it barely blinked last Friday, where the carnage was almost entirely within the tech arena. Todays move was broad as all of the major S&P sectors advanced and again it was led by a risk on flavor with the materials gaining 1.3%. The laggards were the staples, healthcare and utilities. The averages have been doing what they do best, to confound the most, and one must be aware it is nearly impossible to predict the markets movements on a daily basis and perhaps thats why it would be a very good idea to just keep things as uncomplicated as possible. Unless you have a crystal ball by the likes of Kevin “Burnman” Byrne who lit up the tote board, pun intended, with an impressive price with Tapwrit at the Belmont Stakes this weekend then generously proceeded to buy half the grandstand a satisfying beverage, it could be difficult to decipher the markets behavior. One would be best served to follow the overall trend and expect drawdowns along the way, of course one must decide what the number is individually within their comfort zone, but I did find a nice quote on the straightforward topic this weekend in the WSJ by Morgan Housel and here is the quote. “Everything I’ve learned about investing points to the idea that simplicity is underrated and always will be because it feels irresponsible”. Many do prefer the complex algorithms, but it is not necessarily a more profitable outcome. Many speak of the Fed Put and perhaps it is the PPT? The conspiracy theorist group do seem to be working overtime this year absorbing every pullback with vigor. No leaks yet of any such operation, insert hint of humor. Below is the chart of a tech play that was highlighted in our Monday 6/12 Game Plan. Notice how it still managed to CLOSE above its 17.96 cup base trigger during Fridays Nasdaq butchery. One should not take that kind of action lightly.