Our mid-day update takes place on yet another bullish trend day higher as price breaks through resistance toward the prior highs, as I’ve been highlighting recently.
In sum, the market is doing exactly what it should be doing in order to complete a “Repeat Pattern.”
To further put the odds in the Bullish Camp, let’s take a look at today’s strong Sector Breadth Chart:
Unlike Friday’s chart, we see strong Sector Bullishness across the board – underscored by the dismal performance of Utilities today (only 1 of 27 S&P 500 Utility stocks are positive right now).
Our other relative strength laggard is Energy while all other sectors – Bullish along with the defensive Staples – enjoy strong sector performance.
If you’re looking to play trend continuation trades, focus on the following names which could trend higher into the close:
Dollar General (DG), Family Dollar (FDO – both in merger news), Yum Brands (YUM), and Mosaic Co (MOS).
If you can’t resist fighting the tide of money into the market, focus on these potential bearish sale candidates:
Conoco Phillips (COP), Monster Beverage (MNST – retracing after a strong Friday), Loews (L), and Microchip (MCHP).
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade