Given the price action, Corey Rosenbloom, of AfraidToTrade.com, shares a list of Tuesday’s strongest trending (intra-day) names—candidates for pro-trend continuation—as well as the bearish downtrending stock candidates from his weakness scan.
Another holiday week bullish breakout triggered with Tuesday morning’s gap, creating a bullish short-squeeze.
Let’s update our levels for the S&P 500 Index (SPX) and note the big trending stocks Tuesday:
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Monday saw an initial decline from the 2,065 pivot toward the 2,045 target.
The mid-day reversal (on divergences) set in motion the end-of-day rally and then Tuesday’s upside breakout gap.
We were to play bullish if above 2,060 and then 2,065, which was, again, the correct strategy (we’re now at 2,080).
Let’s see what our breadth chart reveals about current market strength (or weakness):
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Unlike Monday, all sectors and almost all stocks (97% of the Dow Jones; 91% of the S&P 500 (SPX)) are bullish.
With this type of money flow and price action, we’re only allowed to trade long/bullishly into the impulse.
Here’s a top-level—or full-perspective—view of Tuesday’s S&P 500 stock performance (courtesy of FinViz.com).
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Here are Tuesday’s strongest trending (intra-day) names, candidates for pro-trend continuation:
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Amazon.com (AMZN) returns for a second day with Thermo (TMO), Abbot Labs (ABT), and Precision (PCP)
Bearish downtrending candidates include the following stocks from our weakness scan:
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I recommended avoiding short-selling Tuesday, though Starwood (STWD), United Natural Foods (UNFI), WhiteWave (WWAV), and Bitauto (BITA) are among the weakest/downtrending stocks of the session.
By Corey Rosenbloom, CMT, Trader and Blogger, AfraidToTrade.com
