First of July Market Update and Trending Stock Scan

Jul 1, 2015: 1:32 PM CST

And so begins Quarter 3 2015!

The reversal continued yet price struggled mid-day in a falling range environment.

Let’s jump straight into our July 1st mid-day market update and stock scan.

What’s going on now and what levels are important? Let’s see:

Price is building off the “Rounded Reversal” and Positive Divergences off our 2,055 support target.

Yesterday afternoon’s rally set the stage for a continuation to the upside which we saw immediately off the opening gap.

However, a negative TICK (Market Internal) Divergence near 2,085 set the stage for a retracement that has gone a little deeper perhaps than expected.

For now, we’re monitoring price action into the key 2,070 pivot and will note it as our bull/bear battle line.

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

Sector Breadth is across the board bearish today, despite the early bullish price action.

Our strongest sector is Technology with “only” 35% of stocks in the sector positive.

The weakest is Staples with only one of 37 stocks positive right now.

All other sectors trade near the 15% breadth level, though Financials and Materials are weaker than others.

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Chubb (CB), Heritage (HRTG), Cincinnati Financial (CINF), and Gamestop (GME)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

United Rentals (URI), Halliburton (HAL), Delta Airlines (DAL), and Southwest Airlines (LUV)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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 “First of July Market Update and Trending Stock Scan”

  1. Zobi Says:

    Following the trend correctly can be so much profitable for anyone, but with this it is obvious that we are uncertain, so I would rather wait for things to get clear instead of jumping on the running train. I am extremely lucky to be having OctaFX broker at my side with their sensational swap free account option, it is a type of facility where I get no money charge on the overnight trades which really help me trade with confident and I can hold onto trade to be certain about the trends.

  2. Amir Says:

    We should be really careful with reversal, as it could turn within blink of an eye. I usually target long term way to keep myself in comfortable zone and the bigger picture is not having to pay anything for overnight trades. This is all thanks to OctaFX broker with their swap free account, it is so much easier to operate this type of account and that’s why I love to work with them and never worry over a thing, as everything is well in control with them.