ChartSmarter Thursday Game Plan 8/3/17

One would have thought the Nasdaq would have acted much firmer than it did with AAPL reporting a big number after the close on Tuesday. The stock rose 4.7% and finished just above a 156.75 cup base trigger. It did little for the benchmark, which ended UNCH, although it CLOSED well off session lows of .8% in the late morning hours. The overall recent tech sloppiness should not be surprising as the semiconductors have acted frail as well. Today saw two very respectable names, MTSI and COHR, lose more than 20% after delivering numbers. We spoke yesterday of the problems concerning the Dow outperformance as historically investors will part last with their mature, defensive names. More worrisome is the Russell 2000 which lost 1.1% today and that index is usually a leading indicator and the last 2 weeks have recorded shooting star candles at all time highs and the weeks ending 6/30 and 7/7 registered doji candles which portend future weakness. The soft August seasonality has been well documented too and maybe the bulls can point to all the negativity being spoken about in a contrarian way. Looking at some other names today that in retrospect almost seem to easy was AMC slumping 27% after earnings and it is lower by 57% from recent 52 week highs and has lost ground 18 of 30 weeks this year, not including this weeks debacle. Obviously NFLX has had an impact on them and looking at the last one year performance for both shows AMC down 48% and NFLX up 98%. More names that were directly affected by other FANG plays were WMT, which unlike AMC was able to recover from the depths on 6/16 falling nearly 5% after AMZN announced it was swallowing WFM, pun intended. It is now firmly above the level of that session and is on a 10 day winning streak. Talking about food sour names normally remain so, whatever sector they belong to, and below is the chart of ZOES and how it was looked at in our 7/19 Game Plan. Shareholders should get ready for more indigestion.