Nov 7 More Upside Action Market Update and Stock Scan

Nov 7, 2014: 2:13 PM CST

We have “more of the same” upside action in the stock market, defying bears all the way to new highs.

The short-squeeze continues and we have a repetitive morning pattern to study on the intraday frame.

Here’s our updated levels as the S&P trades through all-time highs:

Our key pattern is the highlighted region where price traded down in the morning session, only to see a surge of impulsive, intervention buying that helped propel the market higher and trigger the stop-losses of the bears (short-sellers) at each breakout to new highs.

Patterns repeat and we continue to observe this pattern propelling price to new highs.

It’s difficult to buy a grossly extended market, but this ‘creeper trend’ has become the norm lately, so keep that in mind (we have to apply different tactics to impulsive movements like this).

Breadth is slightly mixed – much like the market at the moment:

We have three outstanding sectors today:  Materials, Energy, and Utilities.

This neither adds confidence to the bullish breakout to new highs, but due to strength in Materials, it neither gives the bears ammunition to claim a bearish signal from sector money flow.

Surprisingly, the weakest sector by far today is Health Care.

We have potential bullish trend continuation plays in the following stocks:

Iron Mountain (IRM), Monster Beverage (MNST), Target (TGT), and Whole Foods Market (WFM).

Potential downtrending candidates exist in stocks showing relative weakness today:

Humana (HUM), First Solar (FSLR), United Health Group (UNH), and Disney (DIS).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “Nov 7 More Upside Action Market Update and Stock Scan”

  1. Nov 10 More Bullishness Market Update and Stock Scan for the Day | Afraid to Trade.com Blog Says:

    […] short-squeeze continues and we have a repetitive morning pattern to study on the intraday frame (as seen Friday) which continued […]

  2. Ali Says:

    Great!

  3. Ahmed Says:

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