Markets began the holiday shortened week on the wrong side of the bed. Futures were up Monday night, then were off a good amount premarket Tuesday and one had to think this would be a good test to the stamina of the bull market. If it could open hard lower and rally into the CLOSE that would have been very positive. The test failed. A mild late day move higher still witnessed the Dow take the worst of the hit down 1.6%. It was followed by the S&P 500 lower by 1.2%, the Nasdaq by .5% and true to form the Russell 2000 held up best falling .2% (it was up in the early going but was unable to finish green). The Russell 2000 was able to CLOSE in the upper half of its daily range Tuesday, and has now done so 8 of the last 10 days. The VIX which reversed hard last Wednesday-Thursday before a bullish engulfing candle on Friday romped higher today to the tune of more than 30%.

Looking at individual sectors it was more of the same from last week as the utilities and staples "outperformed". The XLU and XLP were the best actors UNCH and down by 2.2%, and the XLU did preserve much of last weeks 3.1% advance. Both of the aforementioned ETFs are battling with the very round 50 number and the XLP has now recorded seventeen straight CLOSES beneath 50. On a weekly basis the last 4 weeks have recorded four straight very tight WEEKLY CLOSES as they have all finished within just .34 of each other. Could it be similar to the 4 week period ending between 11/11-12/2/16 near the 50 number as well which went on to see a lukewarm liftoff? I would say probably not as the 2016 period all CLOSED above 50, the opposite of the last 4 weeks. Lagging Tuesday were the financials as the XLF lost 3.4% on huge trade, Tuesday was accompanied by volume equal to the last 3 days of last week, undercutting its 200 day SMA. It has declined 9 of the last 12 days and now sits firmly in correction mode down 11% from most recent 52 week highs.

I do not happen to be a big fan of stocks moving on events, as I much prefer good old fashioned plain, organic buying on strong volume. Often times the move will be false and the stock reverses lower. However is you can find a name that did break higher on certain news and hold the break then you may have something. Below is the chart of SGMS and how it appeared in our Wednesday 5/15 Game Plan (it responded powerfully on 5/14 following Supreme Court legislation). The stock rushed past a 56.55 cup base trigger that day too, and the move has held firm. It has now CLOSED above the round 60 number for two consecutive weeks, with both finishing very taut within just five cents of each other. If this Friday can end up tight again it could potentially record an explosive move higher.

Nice action on tough tape and still 7% off most recent 52 week highs. BJRI is a best in breed casual diner higher by 47% YTD and 18% over the last one year period and sports a dividend yield of .8%. Earnings have been very consistent with FIVE consecutive positive reactions higher by 13.4, 12.8, 2.5, 2.1 and 6% on 4/27, 2/23, 10/27, 7/28 and 4/28/17. The stock is higher 24 of the last 37 weeks and doubled in the process since week ending 9/15/17. It is acting well POST breakout from a long 47.65 WEEKLY double bottom trigger taken out week ending 4/13 that began the week ending 2/20/15. Enter BJRI at 52.50 after nice gap fill on 5/23 from the 4/26 session.

Trigger BJRI 52.50.  Stop 49.35.

Lagging peers CMG and SHAK, but nice action on soft tape. CAKE is a casual diner laggard higher by 6% YTD and lower by 13% over the last one year period and sports a dividend yield of 2.3%. Earnings momentum is on the rebound with back to back gains of 2.3 and 3.7% on 4/26 and 2/22 after losses of 6.3 and 6.2% on 11/2 and 8/3. The stock is higher 24 of the last 37 weeks, but to be fair was preceded by an ugly 16 of 19 week losing streak weeks ending between 5/5-9/8/17 that chopped it nearly in half. It has recorded 8 straight weekly CLOSES above the round 50 number which it was pushed back at between weeks ending 12/1/17-3/16. Enter CAKE on pullback toward figure at 50.60.

Trigger CAKE 50.60.  Stop 48.75.

Peer RJF on 4 session losing streak after prior 13 day winning streak as group pulls back. LPLA is a financial leader higher by 19% YTD and 71% over the last one year period and sports a dividend yield of 1.5%. Earnings have been mostly higher with gains of 6.3, 4.1, 1.9 and 9.1% on 5/4, 2/2, 7/28 and 4/28/17 and a loss of 5.8% on 10/27. The stock is on a current 4 week winning streak higher by 16%, which began with a 14% combined gain the weeks ending 5/4-11. LPLA broke above a cup base trigger of 66.74 on 5/8 and enter on a pullback at 67.25. It now sits 7% off most recent all time highs after recording a bearish shooting star candle on 5/22.

Trigger LPLA 67.25.  Stop 63.

Footwear continues to advance with DECK up 16 of the last 18 days. CROX is a best in breed footwear play higher by 37% YTD and 163% over the last one year period. Earnings have been mostly higher with gains of 7, 5.1 and 17.4% on 5/8, 8/9 and 5/10 and losses of 13 and 9.1% on 2/28 and 11/7 (notice big positive reversals the very next day after losses with gains of 5.6 and 12.7% on 11/8/17 and 3/1). The stock is on a 3 week winning streak up by a combined 11.5% and has tripled since trading under 6 the week ending 5/12/17 (that week rose 15.1% in the strongest weekly volume in last two years. Enter CROX with a buy stop above a cup base trigger of 17.53.

Trigger CROX 17.53.  Stop 16.40.

Peers TREX and CBPX doing their part to keep group strong. PGTI is a building materials play higher by 23% YTD and 81% over the last one year period. Earnings have been mostly higher with gains of 2, 12.8, 4.2 and 3.7% on 5/1, 2/20, 8/3 and 5/4 and a loss of 1.1% on 11/2 (11/2 session reversed by 8% odd session lows and CLOSED at highs for day). The stock is on a 5 week winning streak higher by a combined 16% and the last 4 have all come on above average weekly volume. It is acting well POST breakout from a 19.70 cup base trigger taken out on 5/18 and enter PGTI near very round 20 number, which it has recorded seven straight CLOSES above, at 20.35.

Trigger PGTI 20.35.  Stop 18.70.

Good luck.

Trigger summaries:

Buy after recent gap fill BJRI 52.50.  Stop 49.35.

Buy at round numbers CAKE 50.60.  Stop 48.75.

Buy pullback into cup base breakout LPLA 67.25.  Stop 63.

Buy stop above cup base trigger CROX 17.53.  Stop 16.40.

Buy at round numbers PGTI 20.35.  Stop 18.70.

This article requires a Chartsmarter membership. Please click here to join.

Markets began the holiday shortened week on the wrong side of the bed. Futures were up Monday night, then were off a good amount premarket Tuesday and one had to think this would be a good test to the stamina of the bull market. If it could open hard lower and rally into the CLOSE that would have been very positive. The test failed. A mild late day move higher still witnessed the Dow take the worst of the hit down 1.6%. It was followed by the S&P 500 lower by 1.2%, the Nasdaq by .5% and true to form the Russell 2000 held up best falling .2% (it was up in the early going but was unable to finish green). The Russell 2000 was able to CLOSE in the upper half of its daily range Tuesday, and has now done so 8 of the last 10 days. The VIX which reversed hard last Wednesday-Thursday before a bullish engulfing candle on Friday romped higher today to the tune of more than 30%.

Looking at individual sectors it was more of the same from last week as the utilities and staples "outperformed". The XLU and XLP were the best actors UNCH and down by 2.2%, and the XLU did preserve much of last weeks 3.1% advance. Both of the aforementioned ETFs are battling with the very round 50 number and the XLP has now recorded seventeen straight CLOSES beneath 50. On a weekly basis the last 4 weeks have recorded four straight very tight WEEKLY CLOSES as they have all finished within just .34 of each other. Could it be similar to the 4 week period ending between 11/11-12/2/16 near the 50 number as well which went on to see a lukewarm liftoff? I would say probably not as the 2016 period all CLOSED above 50, the opposite of the last 4 weeks. Lagging Tuesday were the financials as the XLF lost 3.4% on huge trade, Tuesday was accompanied by volume equal to the last 3 days of last week, undercutting its 200 day SMA. It has declined 9 of the last 12 days and now sits firmly in correction mode down 11% from most recent 52 week highs.

I do not happen to be a big fan of stocks moving on events, as I much prefer good old fashioned plain, organic buying on strong volume. Often times the move will be false and the stock reverses lower. However is you can find a name that did break higher on certain news and hold the break then you may have something. Below is the chart of SGMS and how it appeared in our Wednesday 5/15 Game Plan (it responded powerfully on 5/14 following Supreme Court legislation). The stock rushed past a 56.55 cup base trigger that day too, and the move has held firm. It has now CLOSED above the round 60 number for two consecutive weeks, with both finishing very taut within just five cents of each other. If this Friday can end up tight again it could potentially record an explosive move higher.

Nice action on tough tape and still 7% off most recent 52 week highs. BJRI is a best in breed casual diner higher by 47% YTD and 18% over the last one year period and sports a dividend yield of .8%. Earnings have been very consistent with FIVE consecutive positive reactions higher by 13.4, 12.8, 2.5, 2.1 and 6% on 4/27, 2/23, 10/27, 7/28 and 4/28/17. The stock is higher 24 of the last 37 weeks and doubled in the process since week ending 9/15/17. It is acting well POST breakout from a long 47.65 WEEKLY double bottom trigger taken out week ending 4/13 that began the week ending 2/20/15. Enter BJRI at 52.50 after nice gap fill on 5/23 from the 4/26 session.

Trigger BJRI 52.50.  Stop 49.35.

Lagging peers CMG and SHAK, but nice action on soft tape. CAKE is a casual diner laggard higher by 6% YTD and lower by 13% over the last one year period and sports a dividend yield of 2.3%. Earnings momentum is on the rebound with back to back gains of 2.3 and 3.7% on 4/26 and 2/22 after losses of 6.3 and 6.2% on 11/2 and 8/3. The stock is higher 24 of the last 37 weeks, but to be fair was preceded by an ugly 16 of 19 week losing streak weeks ending between 5/5-9/8/17 that chopped it nearly in half. It has recorded 8 straight weekly CLOSES above the round 50 number which it was pushed back at between weeks ending 12/1/17-3/16. Enter CAKE on pullback toward figure at 50.60.

Trigger CAKE 50.60.  Stop 48.75.

Peer RJF on 4 session losing streak after prior 13 day winning streak as group pulls back. LPLA is a financial leader higher by 19% YTD and 71% over the last one year period and sports a dividend yield of 1.5%. Earnings have been mostly higher with gains of 6.3, 4.1, 1.9 and 9.1% on 5/4, 2/2, 7/28 and 4/28/17 and a loss of 5.8% on 10/27. The stock is on a current 4 week winning streak higher by 16%, which began with a 14% combined gain the weeks ending 5/4-11. LPLA broke above a cup base trigger of 66.74 on 5/8 and enter on a pullback at 67.25. It now sits 7% off most recent all time highs after recording a bearish shooting star candle on 5/22.

Trigger LPLA 67.25.  Stop 63.

Footwear continues to advance with DECK up 16 of the last 18 days. CROX is a best in breed footwear play higher by 37% YTD and 163% over the last one year period. Earnings have been mostly higher with gains of 7, 5.1 and 17.4% on 5/8, 8/9 and 5/10 and losses of 13 and 9.1% on 2/28 and 11/7 (notice big positive reversals the very next day after losses with gains of 5.6 and 12.7% on 11/8/17 and 3/1). The stock is on a 3 week winning streak up by a combined 11.5% and has tripled since trading under 6 the week ending 5/12/17 (that week rose 15.1% in the strongest weekly volume in last two years. Enter CROX with a buy stop above a cup base trigger of 17.53.

Trigger CROX 17.53.  Stop 16.40.

Peers TREX and CBPX doing their part to keep group strong. PGTI is a building materials play higher by 23% YTD and 81% over the last one year period. Earnings have been mostly higher with gains of 2, 12.8, 4.2 and 3.7% on 5/1, 2/20, 8/3 and 5/4 and a loss of 1.1% on 11/2 (11/2 session reversed by 8% odd session lows and CLOSED at highs for day). The stock is on a 5 week winning streak higher by a combined 16% and the last 4 have all come on above average weekly volume. It is acting well POST breakout from a 19.70 cup base trigger taken out on 5/18 and enter PGTI near very round 20 number, which it has recorded seven straight CLOSES above, at 20.35.

Trigger PGTI 20.35.  Stop 18.70.

Good luck.

Trigger summaries:

Buy after recent gap fill BJRI 52.50.  Stop 49.35.

Buy at round numbers CAKE 50.60.  Stop 48.75.

Buy pullback into cup base breakout LPLA 67.25.  Stop 63.

Buy stop above cup base trigger CROX 17.53.  Stop 16.40.

Buy at round numbers PGTI 20.35.  Stop 18.70.