May 4 Stock Scan and Neverending Bull Trend Market Update

Quick – let’s take a poll.  When will this bull market end?  Never?  Good guess!

Today’s session expanded on the bullish reversal that developed late Thursday as we had another short-squeezed breakout above the 2,110 key daily pivot.

Take a moment to read the “S&P 500 Level Planning on the Bull Trap Breakout” update and let’s examine where we are and we’re we’re planning.

Here’s a snippet from Friday evening’s Member Strategy Report that forecast today’s rally:

For multiple reasons, we expected a rally UP off the 2,080/2,085 low and that’s precisely what the market did.

It exceeded our upside target (near 2,100) with a short-squeeze impulse rally that created a powerful T3 Trend Day today.

For Monday, we’re again going to trade long/bullishly as the short-squeeze continues above 2,110. Target 2,120 and if above 2,120.

As we can see, the market did continue the upward impulse above 2,110 and traded straight into our 2,120 target.

So far, the bullish side of the market was the correct play as morning strength shot the market from 2,110 to 2,120.

At this point, we’re seeing a rally back toward the 2,120 pivot and we’ll use that as our focal point now.

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

Today’s session shows across-the-board strength in all sectors except for Energy.

Energy has been a market leader over the last few sessions and today it shows relative weakness, lagging all other sectors.

We need to be slightly cautious given the strength in Utilities.

Other than the defensive Utilities, Financials and Industrials are today’s offensive out-performers.

Be sure to reference the earlier post “What Sector Rotation is Saying so far in 2015″ for background and an updated Sector Performance grid on a larger scale.

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

Cognizant (CTSH), Exact Sciences (EXAS), Centene (CNC), and JM Smucker (SJM)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Keurig Green Mountain (GMCR), Santander (SC), Abercrombie & Fitch (ANF), and Omnivision (OVTI)

Be sure to study this morning’s update on Keurig Green Mountain’s critical support level into $ 110.

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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).


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