Start of August Update and Trending Stock Scan

Aug 3, 2015: 2:13 PM CST

Though buyers attempted a bounce-rally up off 2,100’s key support level, they failed as the market dropped sharply to a new swing low.

What levels are we focusing on now? Let’s see!

For now, we continue to focus on two simple levels:

Though buyers had an opportunity to enter and bounce price higher Friday, they failed with the opening of the market this week.

Price instantly pushed under 2,100, stalled as a key battle took place at this important level, and buyers capitulated to the more aggressive sellers.

We see the breakdown and sharp intraday swing straight down from 2,105 to 2,085 as a new short-term downtrend developed.

We’re now watching the 2,085 target level and the short-term pivot high into 2,092 for clues for trading today.

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

All sectors are beneath their 50% Breadth levels and our two “winners” today are the defensive/bearish Staples and Utilities sectors.

Energy – as oil prices collapsed to another new swing low – has zero stocks in the sector positive.

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

CDW Corp, Delta Airlines (DAL), Clorox (CLX), and Autodesk (ADSK)

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

Twitter (TWTR), Fossil Group (FOSL), Baker Hughes (BHI), and Target (TGT)

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Corey Rosenbloom, CMT
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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 Responses to “Start of August Update and Trending Stock Scan”

  1. Hina Says:

    This month so far has been very confusing, so it’s tough to say anything while another massive benefit is that I am working with OctaFX broker, so that keeps me in good shape on every trade I make, I get extra benefit of 15 dollars profits per lot size trade with their rebate program, so that allows me to be successful really easily and that is big reason why I can be aggressive and attempt to make big profits without any facing any fear at all.

  2. Manish Says:

    I think we should be using tight stop loss with these key
    levels, as they can seriously dangerous if we do things without these tools. I
    trade with OctaFX broker and they got lovely conditions with low spread of 0.2
    pips, high leverage up to 1.500, stop out level of 15% plus margin been 25%, it’s
    all great for me to trade with keeping these levels in mind and even in getting
    it wrong, I am not losing too much.