Dec 11 Power Rally Intraday Update and Stock Scan

Dec 11, 2014: 1:57 PM CST

Right on cue, and directly from the key confluence level I highlighted yesterday, the bulls intervened to thrust this market higher again with a sharp retracement swing higher.

Should we have expected anything different?

Let’s update our levels and highlight the strongest trending stocks to trade for the moment:

Buyers rushed to prevent the ongoing sell-off from a double-bottom play off 2,025.

This led to a powerful short-squeeze and bull-dominated impulse to the current 2,055 pivot level from which we’ll frame today’s session.

A clean trigger break above 2,055 – which seems less likely due to the divergences and falling TICK channel – would simply trigger another short-squeeze bullish play toward 2,060 and higher.

More likely, the market consolidates within the 2,050 and 2,055 range.  However, be prepared to short a trigger-break under 2,049.

Unlike yesterday, Sector Breadth is purely bullish now:

Like yesterday’s update where every single sector was bearish, today’s update reveals every single sector to be BULLISH.

There’s not much information that can be gleaned from that in terms of targeting strong or weak sectors today.

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

Walgreen (WAG), EBAY, Molson Coors Brewing (TAP), Shire (SHPG).

Potential downtrending candidates exist in stocks showing relative weakness today:

Olin Corp (OLN), MasTec (MTZ), Huntsman (HUN), and Garmin (GRMN).

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Dec 11 Power Rally Intraday Update and Stock Scan”

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