The Closing Print live trading and financial blog during market hours.


Institutions Continue Selling Stocks Into Strength as Few Leaders Breakout

Safety and preservation of capital continue to be our mantra, as institutions make it obvious that they are selling stocks into strength. Fewer stocks are leading or breaking out. And, those that do break out are defensive or considered safety trades.

Seasonality has yet to kick in and traditional winning sectors are weak. Retail, for example, led the markets higher, only to sell off as institutions took profits into earnings high flyers like Walmart. Therefore, we either move to cash or trade the strongest stocks from the leading sectors.

How can I find the leading stocks you might ask?

Leaders – IBD Industry Group Rank

Every day, Investors Business Daily ranks 197 industry groups and sorts them by performance. Curators of the listing watch which industry groups are moving higher and compare those stats with the industry group ranging from 6 weeks ago, then 3 weeks ago, and finally into the current week.

Leaders – Telecom Services/Wireless

Telecom Services and the wireless group are ranked number one this week.


Industry Group Rank


Consider trading stocks from this group, as the charts of most of these stocks are moving higher in a weak tape. Thus, these particular candidates are exhibiting relative strength. They should move higher once the markets turn.


Telecom Services Wireless


Verizon (VZ) Wireless

We have a position in Verizon (VZ) Wireless which exhibits relative strength versus weakness in the S&P500 (RS line rising = 94).

In addition, the volume is increasingly bullish. Sales and earnings in the left panel reflect a good choice. This metric is forecast to increase into 2019.


VZ Telecom 11-20-2018


Finally, the last earnings announcement shows a 24% beat.

While the markets continue to exasperate the majority of investors, seasoned traders moved into larger cash positions in late September. We did the same.

As we near the Opening Bell, futures are weak again. Your choices are narrow. Either stay in cash or short weak candidates. If you choose to enter into the fray, be sure you are trading the strongest stocks in the leading industry groups.

As a side note, we are eager to see a major accumulation day (MAD) where 90% up volume signals institutions are back. Until we see that +9:1 day, it appears institutions continue selling into strength.

Join us during our LIVESTREAM broadcast during market hours as we discuss this topic and more. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,



Disclaimer:  Do your Own Research

Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.

Investment Warnings

We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

Live Sessions

Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.