December 2 Bullish Update and Stock Scan

Yesterday seems to be all the pullback bears get.

Buyers stepped back in as bears stepped out with another financially losing short-squeeze against them.

For the set-up and now the real-time resolution, be sure to see yesterday’s post for key target levels to “plan the pullback.”

Let’s update our mid-day information and highlight our trending stock candidates for today’s session.

It feels like the bearish side will never again win the supply/demand battle; they continue to push price higher with their collective stop-losses (buy-back to cover) when triggered at higher levels.

Nevertheless, we highlighted the 2,050 level as a possible inflection zone and that’s exactly what happened – despite all logic and evidence for a steeper pullback.

And now we await the close of today’s session to highlight the resistance into 2,070 as we set-up tomorrow’s strategies.

Sector Breadth is bullish across the board:

All sectors are trading above the 60% level while the session leaders – Financials, Health Care, and Utilities – all intersect the 90% bullish line.

This is indicative of across-the-board bullish money flow, whether from eager buyers or frustrated short-sellers (both groups are buying, after all).

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

Biogen (BIIB), JP Morgan Chase (JPM), Valero Energy (VLO), and Zimmer (ZMH).

Potential downtrending candidates exist in stocks showing relative weakness today:

Astrazeneca (AZN), AT&T (T), VM Ware (VMW), and Verizon (VZ).

It may go against everything you believe in to stay with this bullish trend, but doing anything else has dashed may trading accounts.

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).