Feb 24 New Highs Market Update and Stock Scan

Bycjrosen

After the recent sideways consolidation, stocks continued their short-squeeze driven rally and “All Clear” breakout higher.

The trigger-break above 2,110 caused bulls to become more aggressive as sellers triggered stop-losses again.

We’ll update our key simple levels and note trending stocks today:

The breakout above 2,100 resulted in a short-squeeze where bears (short-sellers) unwillingly helped propel the market higher as they covered their losses with stops triggered above 2,100.

After the highlighted consolidation, buyers became aggressive into yesterday’s close which carried into today’s session.

Continue watching the 2,110 key focal point (note the recent bounce) and the upward momentum that could lift stock prices even higher (on the backs of the short-sellers covering losses).

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

While yesterday’s session saw a muted Breadth Chart, today shows a mixed BULLISH signal.

The strongest sectors split between Financials (offensive) and Utilities (defensive) while all other sectors hover near the midpoint levels.

This isn’t a big bullish or bearish conviction signal given the split in performance today.

Before seeing today’s intraday candidates, be sure to view this morning’s “Six Stocks Strongly Breaking to New 52-Week Highs” for potential swing trading candidates (into strength).

We have potential bullish trend continuation plays in the following stocks from our scan:

SunPower (SPWR), First Solar (FSLR), Expeditors (EXPD), and Sone (SNE).

Potential downtrending candidates exist in stocks showing relative weakness today:

If you can’t resist shorting this market, then try Diamond Offshore (DO), Vodafone (VOD), Macy’s, and Las Vegas Sands (LVS)

Corey Rosenbloom, CMT
Afraid to Trade.com

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

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).

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One Comment

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