ChartSmarter Tuesday Game Plan 5/13/14

Markets started the day Monday on a high note and held strong. The lackluster Nasdaq was the leading index nearly doubling the S&P 500’s gain. It rose 1.8% and stands about 1% below its 50 day SMA. A move above that line would make the technical picture for that benchmark more attractive. The S&P 500 rose 1% and is spooning that round 1900 figure. The action of both those aforementioned indexes must be construed as positive. When they jumped at the open, they had every reason to sell off into the close, but held firm confounding many. There continues to be weakness among many groups which is concerning, as breadth is shrinking, but as much as I hate cliches, this is truly a stock pickers market. That may be the first time I have ever wrote that in my blog in more than four years now. Agriculture is wilting, pun intended. Last week names that reported earnings and fell were ANDE dropping 20%, AGU by more than 5% and CF by 3% plus. BG the week prior fell 6%. That group has been weak for some time, and the importance of that sector falling may not be all that relevant. Utilities however took a bruising late last week with names like ED CMS WEC lower Friday by 1.5-2.5%, and the assault continued into Monday as all three either lost their 50 day SMAs or closed right at them. That can certainly be viewed as a positive as money perhaps flows back into risk on assets.