Can this market actually go down?
No. It can’t. Absolutely not. A sell swing would be silly.
I’m being sarcastic of course, though it doesn’t feel far from the truth!
Buyers swooped in to thrust the market higher, building on yesterday’s two V-Spike intervention reversals.
Let’s update our levels and highlight the strongest trending stocks to trade for the moment:
Building on the strong Jobs Report, buyers put more money to work and sellers (bears) bought-back to cover more losing positions, resulting in another new all-time high for the Dow Jones and S&P 500.
So far, price is declining (at the moment) from the 2,080 level and we’ll focus our attention on 2,075 for now as the intraday pivot.
Sector Breadth can be deemed cautious or bearish at the moment:
Can you believe there’s not a single Utilities sector stock (in the S&P 500) positive on the session right now?
While we’re not seeing any 100% positive readings, sector strength today appears in the BULLISH or Offensive/Risk-On sectors.
We’re seeing a bit of strength in Health Care but clearly not in other Defensive/Risk-Off Names.
This confirms the bullish money flow at the moment. Enjoy the bullish action while it lasts.
We have potential bullish trend continuation plays in the following stocks:
East West Bancorp (EWBC), FMC, Northrop Grumman (NOC), and TD Ameritrade Holdings (AMTD).
Potential downtrending candidates exist in stocks showing relative weakness today:
Retail names Big Lots (BIG), Five Below (FIVE), and Petsmart (PETM) along with Vince Holdings (VNCE).
It may go against everything you believe in to stay with this bullish trend, but doing anything else has dashed may trading accounts.
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