Santa just stuffed our stocking earlier with a 5.0% US GDP growth, sending stocks gapping higher this morning.
So far, price has held the gain and trades at a fresh new all-time high.
Be sure to see this morning’s “Big Picture Update” for a comparison of what that looks like on the Monthly Frame.
Let’s update our chart, note the message from Breadth, and focus on strong (and weak) stocks to trade:
There’s not much to say about the typical holiday action – ultimately the chart above is what is “supposed” to happen given the classic “Santa Claus” or end-of-December historical bullish period.
The upward drift, short-squeeze, bullish influx, whatever you wish to describe it continues to drive equity prices higher and profits into the accounts of those simply trading long (bullishly with the trend and historical seasonality.
What is Sector Breadth revealing about today’s session? Let’s discover together:
All sectors are showing strength today EXCEPT Health Care which is seeing a sharp decline in breadth.
With all sectors strong, there’s not much of a message other than “Money Flow is Strong.”
We have potential bullish trend continuation plays in the following stocks:
Avis Budget (CAR), Express Scripts (ESRX), Ralph Lauren (RL), and Prudential (PRU).
Potential downtrending candidates exist in stocks showing relative weakness today:
Novartis (NVS), Zulily (ZU), DexCom (DXCM), and Novo-Nordisk (NVO).
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
Follow Corey on Twitter: http://twitter.com/afraidtotrade