Big Reversal Market Update and Super Stock Scan Aug 12

Aug 12, 2015: 2:20 PM CST

Well we should never refer to the market as boring!

Today’s session saw a surprise sell swing straight down toward our 2,055 target level.

From there, a big – supremely big – reversal took price back to yesterday’s close.

What levels are we focusing on now? Let’s see!

First, be sure to view Monday’s “Thrilling, Non-Stop, Exciting Trading Range of 2015” for context.

Instead of rallying up away from the 2,075 level as would be logically expected, price instead gapped lower under the trading range support and fell all the way toward the 2,055 key target.

From there, buyers intervened again and sellers once again became buyers as an impulsive bullish rally – and short-squeeze – thrust price all the way back to the higher timeframe reference level as yet another magical Bear Trap sprung.

Once again, we reference the 2,075 larger picture rectangle (consolidation) levels as today’s key pivot.

Follow along with members for more precise daily planning, analysis, and education.

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

Utilities did very well yesterday and today the strong sector is joined by stocks in the Energy sector.

All other sectors are weak today and Financials are the weakest group today.

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

Cimarex Energy (XEC), CyrusOne (CONE), Iron Mountain (IRM), and Kinder Morgan (KMI)

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

Coach (COH), Macy’s (M), FMC Corp, and Tata Motors (TTM)

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

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).

2 Comments

2 Responses to “Big Reversal Market Update and Super Stock Scan Aug 12”

  1. Shaun Says:

    If we are able to track this right than we could make handsome profits from reversals while another massive advantage that I have is working with OctaFX broker, it’s a solid company where there is cTrader platform, it’s outstanding with having advance system which allows me to work really well and I can track these things really easily which allows me to make more profits far quicker and easier which is why I love it so much than anything else.

  2. Maqbool Says:

    It is always great to get such reversal especially if we are
    able to spot it given that we can get so much benefits, I am trading with
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    develop for ECN trading and more so is highly upgraded in technology, it is
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    which session is active while more importantly is rabbit like quick in working.