Friday June 20 Market Update and Stock Scan
After a continuation of the Fed-Day rally, stocks paused today in a consolidation range.
Let’s take a quick moment to update our mid-day charts, hear the message of Breadth, and highlight our top trending stock candidates for the day.
Today’s session saw additional Fed-fueled buying pressure from a short-squeeze already in motion.
The index is divergent in momentum and internals into the 1,965 resistance level and we’ll frame the remainder of the trading day as such:
We’ll be neutral/cautious between the 1,961 and 1,964 levels (yellow highlight)
Bearish for a potential breakdown (target 1,955) on a trigger-break under 1,960
Otherwise pro-trend short-squeeze bullish above 1,965.
Sector Breadth sends a mixed message today:
Today’s Sector Strength appears in Materials, Industrials, and Energy along with Health Care. It’s a mixed message without a clear direction from Risk-On and Risk-Off (defensive) sectors.
Our weakest sectors today include Consumer Discretionary and Technology – along with defensive Staples.
Despite the sideways action, there are always bullish candidates to trade from our scans:
Carmax (KMX), AutoNation (AN), Wells Fargo (WFC), and strong stock Caterpillar (CAT)
Bearish candidates include the following:
We see a ‘repeat offender’ Whole Foods Market (WFM) along with cable companies Viacom (VIAb), Discovery (DISCA), and CBS.
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)