August 27 Big Trend Rally Update and Stock Scan

Aug 27, 2015: 1:16 PM CST

The bounce continued!  The relief rally propelled stock prices higher, breaking free from a Triangle Price Pattern as detailed yesterday.

And what levels are we focusing on now within the high volatility? Let’s chart them now:

As detailed to members last night,

“We’re actually tilting toward the BULLISH side and will aggressively buy a breakout above the 1,940 level (note the divergences and strong Breadth)”

“For now, we see a bullish bounce rally – on stronger momentum and internals (and even volume) – which favors a continuation rally up toward the 2,000 level at least.”

We’re simply seeing this dominant (logical) thesis planning with today’s powerful Trend Day.

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Let’s see what our Breadth Chart reveals about current market strength (or weakness):

While we’ve seen terribly bearish breadth recently, yesterday and especially today reveals almost unanimous, across-the-board, broad-based strength during today’s rally.

At this moment, 100% of Dow Jones stocks are positive while 97% of S&P 500 stocks are higher.

With so much bullish money flow, focus on the bigger picture rather than individual sectors.

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Sears Holding (SHLD), Signet (SIG), Eagle Materials (EXP), and Chevron (CVX)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Williams-Sonoma (WSM), Patterson (PDCO), Fitbit (FIT), and Dollar General (DG)

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Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

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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).

1 Comment

One Response to “August 27 Big Trend Rally Update and Stock Scan”

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