Sept 8 Another Big Rally and Trending Stock Scan

Sep 8, 2015: 2:25 PM CST

The Consolidation after the Drop continues with another big trend day to start the holiday week.

Let’s chart the levels and possible outcomes here:

I provided the upside price pathway to members Friday, speaking in terms of a symmetrical triangle price pattern that targeted a movement up toward 1,955 to 1,960 for a minimum target.

Price already advanced toward, then exceeded, this short-term target and now we’re on “Breakout” Watch.

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While price remains above 1,960, it could trigger a bullish breakout free of the sideways triangle range.

However, a return back under 1,960 suggests the range has further to develop, which would argue for a sell-swing back toward 1,925 (especially if price breaks any time soon under 1,950’s swing low).

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Let’s see what our Breadth Chart reveals about current market strength (or weakness):

Pay close attention to the scale of the chart.  While it may look like Energy is weak today, the reality is that it’s impossible to call an 88% Breadth (88% of stocks in the sector are positive) Reading weak.

Four sectors show 100% positive (all stocks are positive) Breadth which simply confirms the power of today’s bullish rally and positive money flow back into equities (for today at least).

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Teco Energy (TE), Murphy USA (MUSA), Honda Motors (HMC), and Regeneron Pharma (REGN)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Infinera (INFN), GrubHub Inc (GRUB), Alibaba (BABA), and Qihoo 360 Tech (QIHU)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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).

2 Comments

2 Responses to “Sept 8 Another Big Rally and Trending Stock Scan”

  1. Discount stock broker Says:

    nice

  2. Parkas Says:

    We need to be very careful about these trend because they can change all the time, if we are not careful In how we work out situations then we could be facing huge losses, so that’s why we need to be extremely careful. I always go with trend when I am certain, as it’s not the place to take risk. It is also helpful when the broker is OctaFX, it’s the finest company in the world and have all great facilities whether it’s low spread of 0.2 pips or smooth platform!