ChartSmarter Friday Game Plan 8/4/17

Markets displayed a bit of bifurcation once again with the Dow “leading” as it was UNCH for the session outperforming the S&P 500 and Nasdaq which both fell .2 and .3%. It was the Russell 2000 which lagged once agin losing .5% and that small cap index is often a tell on how well the US is doing as it is essentially made up of stocks that derive the overwhelmingly majority of revenue here at home. Peering into individual sectors it was the utilities that acted best (industrials added the same amount) with the XLU higher by .5% and for the week is higher by 1.8% and is looking for a fourth consecutive weekly CLOSE at the top of the weekly range as it carves out a nice cup base with a trigger of 54.73. One should take notice of some of the homebuilding periphery plays that have been remarkably weak, and some of these names were formally standouts in the sector. Examples include some not widely know such as FIX and CBPX which are now 17 and 19% off recent 52 week highs, and names some would be more familiar with like BECN and USG are 18 and 23% off their owns highs. In the energy arena the XLE may have trapped some bulls who entered above the 50 day SMA and the ETF is now back below with some high profile blow ups after earnings this week. PXD is now off 32% from highs made at the very round 200 number the week ending 2/17 and slipped 10.8% Wednesday after delivering numbers. Today the disaster du jour came courtesy of CXO which drilled lower by 8.7%, pun intended, after an ill received reaction. Healthcare names acted well for the most part Thursday with the XLV higher by .2%, yet one name we think its ripe for a pullback is GILD. Below is how they name was profiled in this Thursdays Game Plan.