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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Quick Charting the 12 Strong Trending Dow Stocks at 52 Week Highs

Jul 2, 2014: 1:44 PM CST

Of the 30 stocks in the Dow Jones Industrial Index, which 12 stand “head and shoulders” above the rest and continue to break through new 52-week highs?

Let’s start with the “Strong 12″ as seen on a performance chart from 2014 to July 1:

The strongest trending stocks in the Dow Jones Index include American Express (AXP), Caterpillar (CAT), Disney (DIS), Johnson & Johnson (JNJ), Intel (INTC), Coca-Cola (KO), MMM, Merck (MRK), Microsoft (MSFT), Travelers (TRV), United Health (UNH), and Exxon-Mobil (XOM).

These stocks not only trade at or very near fresh new 52-week highs (for some, all time highs), but they also show strong bullish trends on their daily chart. Continue Reading…

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The Key Support Level Bonds TLT Must Hold to Prevent a Bearish Reversal

Jul 2, 2014: 1:00 PM CST

What support level must bond fund TLT hold or else trigger a breakdown/reversal event?

Let’s start with the Daily Chart to highlight the structure and key level at play now:

We’ll see the current trade level clearer on the hourly chart, but the first level to hold must be the current $111 price support level.

A failure to hold $111 opens a swift downside pathway toward the overlap of the 38.2% Fibonacci Level with the $110 “Round Number” support line.

Any future breakdown under the $110 critical “must hold” confluence suggests that bonds could reverse and trade down to previous support targets including the $107 Fibonacci and Price overlap (highlighted).

A downward reversal in bond prices suggests a boost higher in Treasury yields. Continue Reading…

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