Feb 12 Breakout and Short Squeeze Update with Power Stock Scan

Feb 12, 2015: 2:09 PM CST

The Short-Squeeze Breakout game-plan triggered this morning and the expected breakout impulse thrust price toward all-time highs again.

Let’s update our key levels, highlight the divergence, and of course note trending stocks today:

Let’s start with an update from the prior update on the current range and breakout targeting for the S&P 500.

It took about a month to occur, but price FINALLY managed to break above the upper resistance line near 2,070.

This instantly triggered a short-squeeze (short-sellers taking their stop-losses) at the same time buyers (bulls) added to existing positions or put on new bullish breakout positions.

Now the market is trading toward the prior high and may continue toward the 2,100 index level.

Let’s see what our Breadth Chart reveals about current market strength (or weakness):

The picture above is about as bullish as it gets!

All sectors are near the 90% line except Utilities which is traditionally a defensive/protective sector.

Staples as well lags the other sectors.  Money Flow suggests additional upside price action from this vote of confidence.

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

Expedia (EXPE), Equifax (EFX), SalesForce.com (CRM), GNC Holdings.

Potential downtrending candidates exist in stocks showing relative weakness today:

Bunge (BG), American Express (AXP), Cheesecake Factory (CAKE), and Kellogg (K)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Feb 12 Breakout and Short Squeeze Update with Power Stock Scan”

  1. Praful Says:

    Yeah that’s strong bullish trend potential to continue but we must be careful that we don’t face any manipulation problem as often when price go so clear there is manipulation that plays the role so we need to make sure we don’t get trouble over that. I use OctaFX broker trade with and thanks to their swap free account feature I have zero struggle with keeping myself safe with long term trading and without any commission fear I can continue with my plans.