As we begin this holiday week fresh from our vacation, let’s highlight six “Power Trending” stocks from our scan.
We’ll start with the Six Stock Grid:
A quick scan for strongly trending stocks returns these candidates in no particular order.
The main idea is that stocks which are strong tend to get stronger, thus we look to trade in the direction of the trending action.
We accomplish this through buying pullbacks (retracements) or breakouts as the trend continues.
While these are simple scans, it’s important to do your own work to discover your own trading opportunities.
Here’s a focus on three names in particular from the scan, starting with Apple ():
Apple gave two breakout opportunities – both on breakaway gaps – in October and now January.
While the stock is clearly overextended, the next play would be to enter on a future pullback.
Though you may never consider trading it, Kroger (KR) is a stable, uptrending stock with a “Creeper” Trend that doesn’t allow for clean retracement entries.
Nevertheless, Kroger serves as an example of the power and simplicity of trading with a trend.
Finally, retail stock L Brands (LBR) similarly displays a stable uptrend like Kroger, bu it too broke above the $ 90.00 level to continue its trend (breakout opportunity).
See my recent post on Amazon (AMZN) for another example of a “Gap, Buy, Trend” opportunity.
Again, use these names as candidates for additional analysis and possible trading candidates.
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