Bull Trap Intraday Reversal Market Update and Power Trending Stock Scan Nov 13

Nov 13, 2014: 2:44 PM CST

Wow – well that was certainly interesting.

Stocks continued their short-squeezed march higher but stumbled on divergences and an intraday reversal shy of the 2,050 target.

Let’s update our charts and highlight some strong trending stocks for potential candidates to trade:

The trading range developed between the 2,040 level and the 2,035 support (with minor spikes outside it) and we saw this morning attempt a breakout higher as we’ve seen many times in the past.

However, this time bears rebuffed bullish efforts and swiped the market lower, resulting in a short-sell opportunity under 2,040 (the re-entry into the range) and then on the break under 2,035’s support.

Our focus will be the 2,030 intraday support low as our ongoing pivot for the remainder of the trading day.

Sector Breadth is Bearish – which is not surprising given today’s price action:

No sector is above the 50% breadth level and Energy shows zero stocks positive in today’s session.

Utilities are under-performing while the other defensive names – Staples and Health Care – are strong for the session.

Somewhat surprisingly, our strongest sector for this bearish session is the Consumer Discretionary group.

We have potential bullish trend continuation plays in the following stocks:

Wal-Mart (WMT), CyberArk (CYBR), Rocket Fuel (FUEL), and Novartis (NVS).

Potential downtrending candidates exist in stocks showing relative weakness today:

OGE Energy (OGE), Loews (L), Spectra Energy (SE), and Manpower Group (MAN).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Bull Trap Intraday Reversal Market Update and Power Trending Stock Scan Nov 13”

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