Market Crashing Stock Scan and Level Update for Jan 5
Stocks tumbled sharply this morning, breaking a key support level which exacerbated the selling pressure already underway.
Let’s update our levels and note the strongest downtrending (collapsing) stocks for today’s trading session.
I’ll provide a more detailed update and targets for Daily Members but for now, let’s focus on the failure to hold the price and 20 day EMA confluence support near the 2,055/2,060 index level.
The result was a collapse of the support floor, leading instantly to a touch of the 2,035 target (50 day EMA0 and now a journey likely to touch or break the 2,000 level.
Reference early December for a similar pattern of how the most recent sell-off developed.
Sector Breadth – not surprisingly – is very bearish today, confirming the collapse:
With 25% of S&P 500 stocks higher, the Health Care sector shows strength today.
You should instead be looking for short-sale candidates to trade in the weakest sectors as the tide of selling continues.
Don’t find the bullish diamond hiding in a sea of selling pressure – go with the trend and tide.
Thus, Energy and Industrials with Technology may be great places to look for more short-sale (short-term) candidates.
These may include our weakest stocks on today’s session according to our algorithmic scan:
Herbalife (HLF), Teekay (TK), Telephone/Data (TDS), and United Rentals (URI).
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).
Yeah it’s very true as the market is definitely crashing and the fact is that worst is yet to come gives many people chills. I am already on the negative point from many months and all thanks to OctaFX broker which helps me knowing this so well. I am following their analysis and news service which keeps me in up to date with the possibilities and also I am well aware whether to go for the trade or not and mostly it’s deadly accurate.
We need to be very sure when it comes to trading on this
type of situation, it can be seriously risky especially for beginners, I always
follow this top class site where I am updated with almost everything plus, it
is highly helpful to get backup in shape of OctaFX broker, as they have
mouth-watering rebate program to help me out getting 15 dollars profits per lot
size trade which counts even the negative ones and in every situation we trade
on.