April 22 Breakout Trend Day Breadth Update and Stock Scan

Apr 22, 2014: 11:59 AM CST

With price breaking through resistance and defying divergences, let’s take a look at Sector Breadth (what’s strong, what’s weak) along with the top trending stocks of the day.

We’ll start as usual with Sector Breadth:

There’s a big push-pull situation where Bullish Days show strength in the Offensive/Risk-On Sectors such as Financials, Discretionary/Retail, Tech, Materials and Industrials.

We’ve also seen Energy outperform other sectors, though Bearish days show strength in Staples and Utilities (and Energy).

Today’s session – an alternate thesis bullish breakout – has resulted in one-sided buy-dominant price action as shown above with strength in the Offensive/Risk-On Sectors.

We have four of the top “trend day” stock candidates listed below from our scan:

While Netflix (NFLX) is gapping higher along with other stocks, our scan detected the following stocks, two of which had an opening gap that held strength so far (unlike Netflix):

Earnings Gappers Allergen (AGN), and Harley Davidson (HOG) join strong trenders Legg Mason (LM) and Lowe’s Corp (LOW) for our top candidates.

For those brave trading souls who want to go against money flow and a short-squeeze crushing the bears on a breakout, we have four candidates for potential intraday downtrend continuity:

Pentair (PNR), Allegheny Tech (ATI), Lockheed Martin (LMT) and Alliance Data Systems (ADS).

Be sure to incorporate today’s action into our two scenarios (clearly, the bullish scenario won the day):

Are We Really Repeating this Pattern in the S&P 500 Again?“  (probably, yes)

S&P 500 Range Reference and Market Internal Update – April 21” (overruled)

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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