Dec 22 Range Midday Update and Strong Trending Stock Scan

Dec 22, 2014: 1:44 PM CST

We begin our holiday week awaiting the possible “Santa Claus” bullish rally to keep the stock market trading higher.

Let’s update our chart, note the message from Breadth, and focus on strong (and weak) stocks to trade:

An expanded intraday chart reveals the divergent reversal (which we aggressively highlighted to members ahead of the expected bullish uptrending action) and the resolution into the $207.00 SPY (2,070 in the S&P 500 Index) level.

We’re seeing negative divergences undercut the rally into resistance – the prior “all time” high.

Logical and natural expectations have us cautious if not bearish with the current pattern (lengthy divergences in an overextended market into resistance) while the “Santa Claus Rally” or historical bullish end to December has us on guard to trade more bullish upside breakout action above the current highs.

What is Sector Breadth revealing about today’s session? Let’s discover together:

All sectors are showing strength today EXCEPT for Energy which is seeing a decline thanks to yet another sell-day in Crude Oil.

The weakest sectors are the Defensive names such as Health Care and Utilities which does tend to suggest additional bullish potential price action.

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

Taser (TASR), China Mobile (CHL), KLA-Tencor (KLAC), and Sierra Wireless (SWIR).

Potential downtrending candidates exist in stocks showing relative weakness today:

US Steel (X), Dynergy (DYN), AmTrust Financial Services (AFSI), and Rangold Resources (GOLD).

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Dec 22 Range Midday Update and Strong Trending Stock Scan”

  1. Smith Says:

    Some days it’ so confusing where the market is going to go while at others we always find it easier to predict so we just need to hold strong and never trade when we are uncertain as that generally leads to losses. I always rely on analysis provided by my broker OctaFX, it has deadly accurate service that hardly goes wrong and I don’t even need to pay anything so I feel great working with such a wonderful company in Forex!