Feb 25 Continuation Market Update and Stock Scan

Feb 25, 2015: 1:02 PM CST

So far, today’s session followed the “opening gap weakness, intervention bullish strength rally later” pattern.

The trigger-break above 2,110 caused bulls to become more aggressive as sellers triggered stop-losses again.

We’ll update our key simple levels and note trending stocks today:

The breakout above 2,100 resulted in a short-squeeze where bears (short-sellers) unwillingly helped propel the market higher as they covered their losses with stops triggered above 2,100.

Yesterday’s session closed at the high, though this morning saw a retracement back to the 2,112 pivot level.

I wanted to highlight the simple retracement patterns that continue to be effective for short-term traders to pinpoint entries into this short-squeezed rally.

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

Today’s session gives a muted bullish signal in our Breadth Chart.

All sectors are near the 50% Breadth Level, except Consumer Discretionary (the strongest) and Utilities (weakest).

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

Verisk (VRSK), Nike (NKE), Markwest Energy (MWE), and Newfield Exploration (NFX)

Potential downtrending candidates exist in stocks showing relative weakness today:

Lumber Liquidators (LL), Hewlett-Packard (HPQ), Green Plains (GPRE), and YY

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).

1 Comment

One Response to “Feb 25 Continuation Market Update and Stock Scan”

  1. Raiz Says:

    This happen quiet often but we must be proactive to trade in any situation. Trend is created in blink of an eye and it can change equally fast so we have to be very careful when it comes to riding the trend. I only ride with the trend if it’s confirm and even my risk is not too much due to using swap free option by OctaFX broker so I don’t have to pay any fees and I can work with full comfort for long term trading.