Complete Monday Game Plan 10/7/13

Markets advanced Friday without the luxury of volume however. The Nasdaq gained almost 1% Friday and rose for the fifth consecutive week. For the week it advanced .7% and it was the fourth straight week of gains on better than expected weekly volume. It was also a bullish outside week and its first weekly close above the 3800 level. It is now higher YTD by a robust 26.1%. The S&P 500 was fractionally lower for the week but did manage to find 50 day SMA support every day this week. It is up 18.5% YTD. With all the shutdown and debt ceiling noise, remember our job is to keep an eye on the charts. Select leading stock are acting well which remains a bullish sign. 52 week highs Friday were positive as the number came in benign with news highs to new lows on the NYSE and Nasdaq coning in at 135 to 15 and 139 to 12 respectively. Some groups look fine with others do not. That is normal, and you should look to put money to work in groups that are outperforming. The industrials continue to look good with the XLI finding good support at its 50 day SMA Thursday and has formed a bullish flag formation. Member CAT in the ETF is is forming a bullish inverse head and shoulders pattern and currently rests just below its 50 day SMA. The neckline is a bit away and just above its 200 day near 88. The IBB looks good still, but the healthcare ETF XLV looks less extended as it hugs its 50 day SMA. Many of the names like GILD AMGN BIIB CELG all are in the top 10 names comprising the ETF. For more defensive investors who can not stomach the volatility of the names within the IBB, the XLV dominated by names like JNJ PFE MRK may be your answer. The IYT and SMH continue to look good. Those leaning bearish are the XLF which was unable to make a new higher high on the big 9/18 up day and continues to reside below its 50 day SMA. It rises o soft trade and gains on weak trade. Like honey for the bears. I continue to keep my bullish stance although patience is wearing thin. I am letting stops take the emotion out of the process and do their job. Is their much of a catalyst to get this market going? Earnings season coming soon? Perhaps most bullish of all is that not many at all think this market is going higher and I include myself in that camp.