July 10 Bear Trap Intraday Update and Stock Scan

Jul 10, 2014: 1:12 PM CST

With price breaking under the rising parallel trendline channel, the expectation was for a logical continuation of the sell-off triggered by this morning’s gap.

Buyers (bulls) had other plans (as usual).

Let’s take a look at the current S&P 500 key levels and highlight our trending stocks of the day:

See my prior updates this week regarding the “Rising Parallel Trendline” structure and price planning (including the breakdown that surprised traders this morning):

July 7: Planning the Next (Down) Swing from Resistance – Color Structure

July 8: Planning the Next (Up) Swing from Support- Color Structure

July 9: Plotting the New Support Bounce Color Structure

Today’s gap reminds us to be aware of alternate thesis events that can trigger – price doesn’t always do what we expect it to do.

As we update the current levels, we note the 50% or “halfway” Fibonacci Retracement level into the 1,970 price target (today’s high at the moment).

Other Fibonacci potential target levels include the 38.2% level just above 1,965 and the upper 61.8% level under 1,975.

For now, seek potential bearish trades under 1,965, hold a neutral bias between 1,965 and 1,970, and otherwise keep trading with the steroid-injected bulls above 1,970.

Our pro-trend (bullish) stock candidates include the following:

Bristol-Myers (BMY), Archer-Daniels (ADM), Intel (INTC), and Monster Beverage (MNST).

Potential downtrend (sell day) candidates include the following stocks:

T.Rowe Price (TROW), PVH Corp, Best Buy (BBY), and Black and Decker (SWK).

Join me for a Live Webinar Thursday:

Also, I’m excited to be teaching an educational webinar with Trader Kingdom this Thursday (July 10th) at 3:30pm EST entitled “Stalking the Short-Squeeze: Protection and Profit from Unexpected Events” which will help you increase your ability to plan market events (and trading strategies) like this.

Afraid to Trade Premium Content and Membership

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).

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