Quick November Scan for Strong Channel Trending Stocks in the SP500

Nov 13, 2013: 2:16 PM CST

I’m a big fan of the concept of scanning for “Strong Stocks Getting Stronger” along with the concept of Relative Strength.

Stocks that are trading in an established trend, especially within a structured rising parallel trendline pattern, can provide quick and easy retracement opportunities for swing and even intraday traders.

Let’s take a quick look at nine top stocks in strong uptrends in the S&P 500:

S&P 500 SP500 S&P 500 Strong Stocks Getting Stronger Strong UPtrends Bull Market Trading Opportunities

Using the FinViz screener tool (one of my favorites), I visually scanned for strong trending stocks in the S&P 500.

I hand-selected these nine names as interesting candidates from which to do additional analysis for potential trading opportunities.

It can be helpful to scan visually (seeing multiple charts on the same page at once) for anything that jumps off the chart or catches your eye.

Here is an example of three of these charts which can be the foundation for additional analysis:

Washington Post (WPO):

WPO Washington Post Daily Chart

Ameriprise Financial (AMP):

AMP Ameriprise Financial Daily Chart

Priceline (PCLN) Note the Break and hold above $1,000 per share:

Priceline PCLN

In general, stocks in strong trends (showing strong relative strength) actually tend to get stronger over time as opposed to weaker.  I know it’s tempting to seek tops (reversals) but often simple pro-trending retracement strategies work better than trying to find the elusive ‘top.’

In fact, stocks in strong uptrends are propelled higher in part by short-sellers buying-back to cover (exit/stop-loss) losing positions.

This is particularly true with breakouts above round numbers such as $1,000 in Priceline and Google.

For additional reference material, see the recent “strong getting stronger” stock updates:

Chipotle (CMG) Extends Gains in Strong Uptrend

Chipotle CMG Breakout, Earnings, and Persistent Rallies

Scanning for Strong Stocks with the Most Consecutive Daily and Weekly Closes

Mid-September Scanning for Stocks Most Overextended to Trade (similar scan)

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning parameters as we watch a “hold and bounce” or “break and retrace” scenario play out in the near future.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Corey’s new 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).

3 Comments

3 Responses to “Quick November Scan for Strong Channel Trending Stocks in the SP500”

  1. AH Says:

    what additional analysis?

  2. Corey Rosenbloom, CMT Says:

    Depending on your trading style: factors of volume, oscillators, moving averages, deeper relative strength or sector/industry comparison, or even fundamental analysis for longer-term trades.
    Scans are meant to draw attention to stocks that we may not otherwise have seen as potential trading candidates.

  3. Stock Scan of Highest Consecutive Closes to End November | Afraid to Trade.com Blog Says:

    […] “Quick November Scan for Strong Channel Trending Stocks“ […]