Energy and Staples Take the Money Cake Again

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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Regardless of the actual economics, in terms of these firms having locked in long-term coffee prices, I still maintain that coffee stocks like DNKN GMCR SBUX are getting hit in part due to sympathy selling from the rally in the coffee commodity.

In addition, they had all seen terrific rallies and priced in plenty of good news along the way for quarters on end.

Still, Dunkin’ and Green Mountain remain quite weak and vulnerable to more downside, seen on their daily charts, below.

What are you trading this morning?

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While Gilead is rallying after explosive earnings last night, Amgen and many other biotechnology stocks are slacking this morning.

The sector has enjoyed a spirited snapback rally over the past week, but still has lingering issues, which you can plainly see on the sector ETF daily chart, below. I am looking to see which side wins out at the battle of $230 today.

If bears do, BIS is back on my radar as an ultra-short ETF.

Otherwise, a few grinding days under resistance would probably help the bull case for building up charts.

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Courtesy of The PPT Seasonality feature, here are two stocks with solid performance figures for the month of May.

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The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday. 

It is also worth reiterating another broad market theme of the current pullback which should raise more than a few prudent eyebrows: Despite the carnage in tons of growth leaders in recent weeks, the NYSE McClellan Oscillator (“NYMO”), which is a simple market breadth indicator tool, never once dipped into even mildly oversold territory.

Generally speaking, when NYMO is above zero it tends to indicate bullishness for stocks, and below zero, bearishness. However, extreme readings can indicate overbought or oversold conditions. Above 50 is considered to be overbought, while below -50 is considered oversold.

Of course, a major reason for this is the rotation into other sectors (discussed herein). Still, it is hard to believe bulls will get off this easy, even compared to the benign broad market pullbacks of 2013.

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Along similar lines to the GDP long idea from a few nights ago, keep an eye on RSPP as a long setup in the hot energy sector, basing quite well on the daily chart, below.

At the same time, the rotation into energy stocks is now well-known and obvious. The sector ETF is stretched, short-term, and any individual long may be paired off with a hedge, such as ERY, to play the sector seeing some profit-taint this week.

Drop me your top tickers overnight.

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