December 3 Rally Continues Market Update and Stock Scan

Monday indeed was the end of the pullback and short-lived victory for the bears.

Now, our strategies shift toward the “will the market break through to all-time highs or stall into resistance” logic.

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

The V-Spike Reversal occurred at the beginning of December off the 2,050 level and the S&P 500 index traded in another rising parallel trendline channel to the current 2,070 level.

We’re interacting here and getting ready to trade another bullish breakout above the All-Time High Line near 2,074/2,075 or else play cautiously within the 5 point range between 2,070 and 2,075.

The only acceptable bearish plays would trigger under the 2,070 level.

Sector Breadth is once again bullish across the board:

Sector Breadth reveals a Bullish signal as the three defensive sectors are showing relative weakness today.

Strength is concentrated in Materials, Industrials, and Energy today.

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

PACCAR (PCAR), Pitney Bowes (PBI), Computer Sciences (CSC), and Cummins (CMI)

Potential downtrending candidates exist in stocks showing relative weakness today:

Calpine (CPN), NRG Energy, Clorox (CLX), and Amazon.com (AMZN).

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

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Corey Rosenbloom, CMT
Afraid to Trade.com

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One Comment

  1. This looks like it is going to continue to go this way but when it comes to Forex I have always learned that we should never go for something if we are not 100% sure, I am lucky to have a quality broker like OctaFX, as they always give me 100% analysis that I can follow blind folded, it is awesome to be part of such caring company and the amazing part is that this deadly accurate analysis is completely free as well.

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