Markets continued their jolly ways today as the Nasdaq rose .8% followed by the S&P 500 up .6% and the Russell 2000 ahead by .3%. The Nasdaq was aided by the action in the FANG names which not so long ago seemed to be where the bears were pressing their narrative. All four names gained ground today with NFLX breaking above a cup with handle trigger of 199.05 rising 5.4% in the fifth largest daily volume of ’17. Both GOOGL and AMZN are on a race to the very round 1000 figure and to me AMZN has a better technical picture, although that does not mean I am bearish on Google (GOOGL is just 2% off recent all time highs and AMZN is 9% lower). AMZN is trading much tauter, hallmark bullish characteristics, and today recouped its 50 day SMA and is now honing in on a double bottom trigger of 1000.10. All aboard.
Looking at specific sector performance Thursday it was precisely what bulls want to see with financials and technology leading the way with the XLF up 1.1% and the XLK gaining .9%. Perhaps we are looking at a perfect storm within the financials possibly benefitting from a potential new Fed Chair who advocates for loosening regulation in the group. Additionally with the move copper had today it could be foreshadowing solid economic growth ahead, meaning rising interest rates await. SCCO is ahead by more than 5% this week so far and FCX is still nicely ahead of a cup base breakout trigger of 13.89 taken out on 7/25 and successfully retested on 9/14 bouncing off its 200 day SMA. Lagging today were the utilities but just fractionally so, with the XLU losing .1%.
The transports have been a key component to the ongoing rally and have taken a bit of a hit today with the AMZN news hurting FDX and UPS today, although FDX did manage a nice intraday reversal to CLOSE above a 220.09 cup base trigger and UP on the day. Trucking plays have acted well, but giving the group a good show of strength were the airlines which until recently were hurting. Glancing at the illiquid JETS ETF it is potentially going to record a 4 week winning streak higher by 4.2% heading into Friday, and thats the amount it had advanced the prior 3 week combined. Below is the chart of ALK and how it was reviewed in our Tuesday 9/26 Game Plan and it is still in bear market mode off 21% from recent 52 week highs, while peers that garner all the attention in the press are AAL and DAL both lower by 7 from theirs. It is now above its 50 day SMA and looking for its first back to back up weeks since early June.