June 5 Stable Market Update and Trending Stock Scan
After yesterday’s strong sell session, price stabilized and traded in a range today.
Is a reversal building off the 2,090 target? Let’s chart the evidence.
Following the (slightly) better than expected Jobs Report, price broke fully to the 2,090 level and then a V-Spike Reversal propelled price back to the 2,100 level.
From there, price traded within a consolidation range between the 2,090 and 2,100 pivot points.
Positive divergences off a higher timeframe support target suggest a bullish reversal up away from 2,090 and above 2,100 but price will be the judge – not probabilities or divergences.
Note the green breakout bullish (reversal) zone above 2,100… and the bearish breakdown sell-zone under 2,090.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Like the market, we’re seeing stable – bullish – Money Flow in our Sector Grid.
The strongest sectors are the Bullish/Risk-On names – including Energy – while the weakest sectors are the defensive names.
This supports the logic that odds favor a rally up off the 2,090 level and above 2,100.
Though again, price will cast the deciding vote and our trades will reflect the real-time price action.
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
Qihoo (QIHU), Under Armour (UA), KITE Pharma, and Infoblox (BLOX)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Altria (MO), Questar (STR), Reynolds American (RAI), Dr. Pepper Snapple (DPS)
Follow along with members of the Afraid to Trade Premium Membership 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).
In my view at the moment market is not really stable and it would be big risk to call it that, if we want to get fair results then we must learn to trade in with strict money management and that’s possible after we plan better. I am fortunate to be having OctaFX broker with their 50% bonus on deposit; it’s an incredible amount for bonus and allows me to trade really easily, so I can also plan well and trade with good money management.
Whenever market is stable it is always great to do scalping since we can easily collect out few pips, but we got to be careful of knowing things correctly. I really love this blog since with following this, I am able to get great long term ideas and that always work nicely. I love doing long term trading and with OctaFX broker, I am able to do it with ease due to their swap free account which saves so much money which might be lost otherwise on overnight charges with other companies.