Markets again put up a lackluster performance as the Dow and the Russell 2000 advanced .23% and it was the Nasdaq that lagged ending lower by .1%. Tomorrow will be interesting for the tech rich index as after the close AMZN, GOOGL and MSFT will report earnings. The Nasdaq is lower by 1.1% for the week heading into Friday and looking like its 4 week winning streak with come to an end. Keep in mind it has come very near or touched its rising 50 day SMA after month since March and October has just three sessions left. The S&P 500 is off by .6% and its 6 week winning streak is in jeopardy. The Dow was energized by NKE Thursday as it is building nicely upon last weeks 4.1% gain, higher by more than 7% so far this week. It seems to have brushed aside any competition from UAA which is now more than 50% off most recent 52 week highs. Other footwear plays include SKX which exploded nearly 40% last week and former best of breed play ADDYY has the look of a bearish head and shoulders pattern, with the neckline at the round 110 figure.
Looking at individual sectors there was a bit of diversification as the materials dazzled with the XLB advancing 1.2% and the healthcare group falling by nearly the same amount. The XLV was hampered a bit by its 10th largest component CELG which plummeted 16% today after in ill received earnings report and now stands an astounding 32% off most recent 52 week highs. Looking at the weekly chart some softness could have been anticipated after the reversal following a decent looking cup base breakout trigger of 140.82 taken out the week ending 9/15 in a pattern 27 months long. It is a good example of not falling in love or getting emotional with certain stocks. It is now almost a certainty the name will record a 4 week losing streak down more than 17% heading into Friday, and this is on top of the prior weeks loss of more than 11%. I can not remember who made the call to upgrade BIIB and downgrade CELG, but boy was that a beauty. Talking about BIIB it needs to hold the very round 300 number as it spent 25 months below that figure on a weekly CLOSING basis, before bursting above the week ending 9/1.
The auto group has been driving higher, pun intended, after being stuck in neutral (dead money, opportunity cost) for a long period of time. We all know about TSLA, which is nearing 200 day SMA support after recording a double top near the round 390 number on 6/23 and 9/18, but GM has put on a show and clearly worth talking about. It has acted very well POST breakout from a 38.65 cup base trigger taken out the week ending 9/15 in a 6 month pattern. Volume trends have been powerful, with the week ending 10/6 jumping 11.3% in the third best weekly volume in the last 2 years. Below is the chart of a name, somewhat down the food chain in the space PAG and how it was profiled in our Monday 10/2 Game Plan. This week is higher by 7.9% so far after a well received earnings report and if the gain holds up would be the second strongest gain of 2017. A move above the very round 50 figure can now be added to or initiated as it continues momentum while building the right side of a cup base trigger of 56.15 now 11 months into construction.