July 8 Sell Swing Intraday Update and Stock Scan

Jul 8, 2014: 1:20 PM CST

Today continued the expected sell-swing already in motion and price achieved its downside target (see yesterday’s intraday update and level planning to recap the live analysis as it occurred now that we know the outcome).

With price back into a support target level, let’s update our intraday charts and trending stock scan:

The intraday target for the next likely downswing was (and is) 1,960.¬† Price achieved this level with dual divergences mid-day and now is rallying up off the support level to create a possible bullish “rounded reversal” or trend day that ended into known support.

Watch the price movement above the 1,965 EMA and price pivot (bullish above; bearish beneath 1,965).

It shouldn’t surprise us that Sector Breadth¬† shows a very bearish picture at the moment: Continue Reading…

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Updating SP500 Structure as Expected and Planning the Next Swing Again

Jul 8, 2014: 10:57 AM CST

If you followed yesterday’s morning update, then you’ll find today’s market action is exactly what was suggested (a sharp downside swing) from the “Planning the Next Swing from Color Structure” chart I highlighted previously.

Let’s update the market, note what happened (faster than expected) and plan the NEXT swing for price:

Be sure to read yesterday’s post so you can set the stage for today’s sharp decline – I also discussed this scenario in the evening planning report for members.

We have the market falling sharply from the upper rising trendline down toward the lower rising trendline target.

I highlighted this as the most logical or most likely outcome, with the alternate (or unexpected) thesis being a surprise breakout higher.

Now, we face the exact same parameters in terms of planning, but this time we start from the bottom and plan a bounce. Continue Reading…

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July 7 Intraday Update Level Planning and Stock Scan

Jul 7, 2014: 12:42 PM CST

What levels are we watching at the moment and which stocks are setting up as potential Trend Day candidates?

Let’s start with our S&P 500 intraday level-watching chart:

SPX July 7

The S&P 500 traded down from just above the 1,980 level on TICK and momentum Divergences into the upper trendline of a rising pattern (see this morning’s update on “Color Structure and Planning the Next Swing”).

The intraday target near 1,975 has already been achieved and we’re looking for any sort of bounce-up (with positive divergences this time) off the potential support inflection target at today’s low.

The market is in the “green buy zone” above 1,976 and otherwise is in the “red sell zone” under 1,975.

Sector Breadth shows a very bearish picture at the moment: Continue Reading…

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Planning the Next Swing in the SP500 from Color Structure Chart

Jul 7, 2014: 11:53 AM CST

Let’s start our week with a simple “Color Structure” Chart of the S&P 500 and use it to plan a price pathway for the week.

We’ll start with the current intraday structure chart to set the stage:

The color structure chart shows a sideways rectangle (early May) which is a consolidation pattern and then the recent breakout above the 1,900 level that fueled the breakout and uptrending channel that took place through June (and now into July).

The main idea is that price tends to trade within trendline boundaries and we see a rising parallel trendline channel building the ’structure’ for the current market.

Let’s zoom down to a closer perspective to plan our two price pathways to trade the next price swing: Continue Reading…

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Trading Opportunities from July Consecutive Up Closes Stock Scan

Jul 3, 2014: 1:47 PM CST

During the recent non-stop bullish price rally, which stocks have closed the most days in a row to the upside?

Let’s take a look at our updated stock scan results and spot two specific trading opportunities in the list.

Using TradeStation’s Stock Screener tool, we find the following stocks have the most consecutive daily chart closes to the upside.

CBRE Group (CBG) tops the list with 10 straight up-days in a row, followed by Time Warner (TWX) and Delphi Automotive (DLPH).

You can use the other stocks on the scan to find possible “fade” or reversal strategies during a possible “overbought” or “over-extended” swing, or else you can use this list as a possible relative strength pro-trend scan to buy into a rising trend in a strong stock in an uptrend.

Let’s take a look at two specific trading opportunities from the top of this list: Continue Reading…

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