Stock Scan of Highest Consecutive Closes to End November

Nov 25, 2013: 12:18 PM CST

We know that the broader US Stock Market continues to extend its persistent uptrend, but which stocks are also extending their up or downtrends accordingly?

Let’s take a quick look at the stocks with the most consecutive UP closes along with those trend-fighting warriors with the greatest DOWN closes in this straight-up equity market.

We’ll start with the stocks that have closed the most days to the upside (broader uptrend):

Here’s a quick sneak peek at the Daily Charts of the top two candidates CME Group (CME) and Tyson Foods (TSN):

CME Group CME Daily Chart

Stocks that have closed the most days to the downside:

Also a sneak peek at the top two stocks that have closed the most days to the downside, bucking the broader trend:

How do we use these scans?

As with any stock scan, we need to have a purpose in mind when finding ‘hidden’ candidates to trade.

Simple stock scans like this can call our attention to opportunities in stocks that may not otherwise have shown up on a more complicated or detailed scan.

With these type of “strongest/weakest or most extended” scans, the type of trader you are (and your risk profile) will determine how to use these candidates.

Those who prefer aggressive “fade” or reversal tactics will use these screens to say “These are the most overextended stocks and are ripe for an immediate pullback.  Therefore, the down-close candidates present long/buy opportunities and the up-close candidates present short-sale candidates.”

Notice the possible doji reversal candles in CME Group (CME) and First Energy (FE) which may offer immediate “snap-back” or aggressive fade opportunities against a multi-day movement.

Trend following or traders who prefer to trade retracement entries into strongly trending (or weakening) stocks will use these names to find possible pro-trend entry tactics on retracements.

The color indicator at the bottom is a custom TradeStation indicator I created to show (and scan for) consecutive closes in the same direction.

For prior updates on this topic, see the following posts:

Quick November Scan for Strong Channel Trending Stocks

Strong Stocks Getting Stronger

October Scanning for Most Consecutive Closes (stocks)

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
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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).

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