Five Stocks Carving Out a Good Halloween

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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Even as the broad market remains resilient, Facebook rather quickly filled the gap we looked at yesterday, down to $73.35

Now is a good spot to observe whether buyers defend this market leader.

Elsewhere, the gold miners look to be in the capitulation phase. But I still need to see some more signs of it before making a contrarian long play.

And there is little chance that I am going to get aggressive with index shorts until the biotechs stop going up and making new all-time highs every day.

What are you trading this morning?

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The highlighted pennant pattern on the XLE (energy sector ETF) daily chart, below, shows the potential for a major directional break coming after this recent consolidation.

On weakness back below $85, I am stalking an ERY long, the triple-bear energy sector ETF. On strength, a quick long can be had. But the chart remains damaged goods, so be quick.

Who will win the pennant?

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While U.S. equities remain relatively unfazed buy the strong Dollar, the rest of the world’s bourses and commodities seem to be feeling the heat.

On the Dollar ETF, below, note the coiled daily chart pattern.

Going forward, it will be interesting to see if U.S. equities can withstand another sharp rally higher by King Dollar.

Drop me your top morning watchlist ideas…

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For you night owls out there, feel free to drop me any market/trading-related topics you would like me to cover in a weekend video.

In addition, anything else about the current market, feel free to drop below.

Speak your mind, night owls.

We should gain more insight on Thursday as to how the market truly feels about the end of QE, and other aspects of the Fed’s statement on Wednesday.

So, let’s stay nimble and prepared, and go with HUN as a short setup into further weakness, seen bear-flagging on the first daily chart, below–Chemical names have been under pressure of late, as a group.

And on the long side, if JWN can clear $72 above it can be seen as one of the better base breakout setups in the tape, from that tight sideways consolidation seen on the second chart.

Drop me your top tickers overnight

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