April 2 Midday Stock Market Breadth and Trend Update

Apr 2, 2014: 1:02 PM CST

With the trading day more than halfway complete, let’s take a look at the top intraday trending stock candidates along with our intraday Sector Breadth grid to set the stage for the remainder of the session.

We’ll start with our Sector Breadth Grid:

Sector Breadth

We use intraday Sector Breadth both to get a sense of the broader “Risk-On/Risk-Off” Money Flow into the stock market and also to determine where to concentrate our interest on leading sectors (stocks within them).

The broader picture shows “Risk-On” flow as evidenced by strength in the Consumer Discretionary ($XLY), Materials ($XLB), and Industrials ($XLI) Sectors and relative weakness in Health Care ($XLV) and Utilities ($XLU) but also in Technology ($XLK) which is a Risk-On Sector.

Today’s session resulted in another breakout to new highs and an extension (so far) of the short-squeeze rally at new highs.

While there are many bullishly trending stocks, our scan revealed these top candidates:

Urban Outfitters (URBN), Staples (SPLS), Caterpillar (CAT), and Time Warner Cable (TWX) provide strong bullish potential trend day continuation candidates.

Here are our top four potential downtrending stock candidates:

While we don’t like to play against a clear intraday trend in the stock market, those who prefer reversal or trend-fighting strategies may look to our top downtrending intraday stock candidates:

Tyson Foods (TSN), Verisign Inc (VRSN), Costco (COST), and NextEra Energy (NEE).

As always, continue monitoring the broader equity indexes relative to their prior highs and potential for another Bull Trap.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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