June 4 Additional Breakout Update and Stock Scan

Jun 4, 2014: 12:59 PM CST

Buyers did it again with a clean, impulsive, short-squeeze fueled breakout to all-time highs in the S&P 500.

Let’s update our intraday charts (and key levels) then turn our attention to trend day stock candidates.

I’ve been highlighting the sharp bullish reversals from capital injections into the market at the lows (V-Spike intraday reversals) and another one occurred this morning off the open.

Buyers flooded in as logical bearish sellers flooded out with their buy-to-cover stop-loss orders (helping fuel the rally with a short-squeeze breakout).

Look for June 1st for a similar gap-down into intervention buy-event and breakout for a similar situation.

We’ll be watching the trend for any continuity or else stall/sideways action to develop (as was the outcome June 1st – sideways movement).

Midday Sector Breadth sends another cautious/bearish money flow message:

Like yesterday just over half of the S&P 500 and Dow Jones stocks are negative on today’s session (51% and 60% respectively), and all sectors except Energy, Health Care, and Utilities show negative breadth.  It’s actually the same situation as yesterday’s bearish session.

It’s typically a bearish sign when we see Utilities, Health Care and Staples outperforming all other sectors (all of which are clustered together today except the three leaders).

Finally, we can turn to pro-trend bullish stock candidates like these below:

Walgreen Co (WAG), Under Armour (UA), US Steel (X), and Celgene (CELG).

Downtrending stock candidates may include the following candidates from our scan:

Coach (COH), Bristol-Myers SQUIBB (BMY), Diamond Offshore Drilling (DO), and Allergan (AGN).

Continue watching the intraday S&P 500 levels for a Range Day or continued trend (short-squeeze) to the upside.

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).

2 Comments

2 Responses to “June 4 Additional Breakout Update and Stock Scan”

  1. June 5 Stimulus Short Squeeze Breakout and Stock Scan | Afraid to Trade.com Blog Says:

    […] I’ve been highlighting the sharp bullish reversals from capital injections into the market at the lows (V-Spike intraday reversals) and another one occurred this morning off the open which is the same event as described in yesterday’s update. […]

  2. Bullish Market in Breakout Mode Says:

    […] I’ve been highlighting the sharp bullish reversals from capital injections into the market at the lows (V-Spike intraday reversals) and another one occurred this morning off the open which is the same event as described in yesterday’s update. […]