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Actionable news in NVCR: NovoCure Ltd,

Nasdaq beating of the S&P is bullish for traders

Perhaps the takeaway of the past fortnight has been the Nasdaq Composite's beating of the S&P 500 in nine of the last 11 sessions. This is an indication of conviction among institutional participants.

Within the list, technology's XLK, -2.08% outperformance is another reflection of a risk-on mentality among players. The brokers XBD, -3.25% known for their long-term leading-indicator qualities, outperform nicely, and are another feather in the bull's cap.

As for the backdrop, it remains the same, dominated by China and the timing of the first federal funds rate hike. The market's behavior tells you these are not a concern. If they were, the averages would not be hovering near all-time highs. Meanwhile, Ms. Yellen made comments Wednesday suggesting a December hike is imminent.

Among the names, Interactive Brokers Group IBKR, -3.60% provides securities-brokerage services to retail and institutional customers, and also engages in proprietary trading. Most analysts on Wall Street who follow the stock expect earnings to grow 21% this year and 71% next year.

While Interactive is in a cyclical — and not growth — group, it is worth noting that another member of the brokerage group was a big leader for virtually the entire 1990s bull market. That stock was Charles Schwab SCHW, -4.48% From late 1992 to April 1999, it moved up 86-fold.

Technically, after more than doubling into its July top, Interactive stock has been forming a five-month double-bottom-with-handle base. Tuesday, price cleared the handle by pennies on volume 38% above average, up 2% on the day. Wednesday, price idled as the averages fell.

It would be preferable to see price pull back to the 42.00-43.00 area prior to entrance. Alternatively, the base top high of 45.95 could be used as an entrance...


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