Dec 23 GDP Surge Breakout and Trending Stock Scan Update

Dec 23, 2014: 1:12 PM CST

Santa just stuffed our stocking earlier with a 5.0% US GDP growth, sending stocks gapping higher this morning.

So far, price has held the gain and trades at a fresh new all-time high.

Be sure to see this morning’s “Big Picture Update” for a comparison of what that looks like on the Monthly Frame.

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

There’s not much to say about the typical holiday action – ultimately the chart above is what is “supposed” to happen given the classic “Santa Claus” or end-of-December historical bullish period.

The upward drift, short-squeeze, bullish influx, whatever you wish to describe it continues to drive equity prices higher and profits into the accounts of those simply trading long (bullishly with the trend and historical seasonality.

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

All sectors are showing strength today EXCEPT Health Care which is seeing a sharp decline in breadth.

With all sectors strong, there’s not much of a message other than “Money Flow is Strong.”

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

Avis Budget (CAR), Express Scripts (ESRX), Ralph Lauren (RL), and Prudential (PRU).

Potential downtrending candidates exist in stocks showing relative weakness today:

Novartis (NVS), Zulily (ZU), DexCom (DXCM), and Novo-Nordisk (NVO).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries 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 “Dec 23 GDP Surge Breakout and Trending Stock Scan Update”

  1. Opportunities from Today’s Strongest Trending Stocks Dec 29 | Afraid to Trade.com Blog Says:

    […] selected these stocks using our daily relative strength algorithm (which I use in each day’s free blog update post), only this time I plotted the stocks on the hourly chart instead of the 5-min chart as […]

  2. Opportunities from Strongest Trending Stocks Dec 29 By Afraid To Trade - ChartAnalyst.expert Says:

    […] bullish stocks. I selected these stocks using our daily relative strength algorithm (which I use in each day’s free blog update post), only this time I plotted the stocks on the hourly chart instead of the 5-min chart as […]