June 12 Sell Swing Continues Midday Stock Scan and Update

Although it should be happening, it’s still surprising to see the market actually decline after the non-stop rally of the last week.

We’re seeing a little ‘normalcy’ return to the market with yesterday’s and today’s sell days (Trend Days to the downside) so let’s update our levels, view Sector Breadth, and of course pinpoint the top trending stock candidates of the day.

Just like I mentioned in Tuesday’s mid-day update, any breakdown of the “Magnet” area near 1,947 would trigger a short-sell bias.

The trigger break preceded yesterday’s trend day and it set the stage for the continuation of the selling pressure into today’s session as we target the 1,930 level for a full “Mirror Image” retracement potential play (see Wednesday’s update for more information on targeting).

Do pay close attention to the intraday TICK and Momentum Divergence as price trades just above the 1,930 initial target.

Markets have been known to reverse just ahead of obvious targets and our focal point turns to the 1,930 level here.

Like yesterday, Sector Breadth reveals a clear bearish confirmation picture:

Once again Energy is our top performer with a gap-up in oil prices as 84% of S&P 500 Energy Stocks are positive right now on the session.

The closest sector performer is Utilities with 42% of stocks positive and all other sectors lag behind (Health Care is third today).

Most sectors are showing positive performance near 10% to 20% levels on a downtrending day twhere 83% of Dow Jones and 79% of S&P 500 stocks are negative right now.

Trend fighting stocks showing relative strength today include the following from our scan:

Noble Corp (NE), TransOcean (RIG), Keurig Green Mountain (GMCR), and our good friend Chipotle (CMG).

Focus your attention (intraday stock candidates) on sell/bear trending stocks:

CarMax (KMX), Southwest Airlines (LUV), Carnival Corp (CCL), and formerly strong Caterpillar (CAT).

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

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).