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Summary
This mid-weekly MarketSmith Blue Dot scan produced 12 candidates to choose from. And, depending on which sectors are strongest, we’ll most likely trade a few of them to analyze how well they perform. Transports are gaining as consumer spending picks up into the holidays. In addition, Transports-trucking broke out (+2.40%) to fresh 52-week highs on Tuesday. Year to date truckers in particular have mustered a 21.09% gain.
YRC Worldwide (YRCW) – Daily
YRC Worldwide (YRCW) is breaking out of a flat base and (+6%) above its’s pivot high on day one. MarketSmith and IBD exclusive RS line is at highs suggesting continuation, provided the indices and sector also rally today.
Volume has been above average for 5 of the last 6 trading days. Weekly stochastic (not shown) is turning higher at 50. The latter suggests the stock should close in the upper half of its daily range moving forward.
YRC Worldwide (YRCW) – Weekly
The weekly MarketSmith chart depicts a 2-year trend break. The right side of this pattern is considered Phase II, or the mark-up phase. Look for price action to continue higher and use proper risk management.
We’re bullish YRCW on a continuation of the current trend. Stop if it loses the breakout pivot and moves lower over the next few trading days.
Te Connectivity (TEL)
This is the second stock that popped up on the MarketSmith Blue Dot scan. Te Connectivity hails from the electronic-parts industry group, currently managing a gain of (19.68%) year to date.
We’re bullish above the breakout pivot. Initially we would place our stop just below (114.40) if (TEL) drops back into the pattern over the next few trading days, then we would trail our stop moving forward.
Additional MarketSmith Candidates
It is worth noting that the S&P500 is just below all-time highs. The potential for resistance to hold price action at this level is significant, so we will watch the indices while planning to enter any of these trades this week.
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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Disclosure: As an #ibdpartner, that means my use of investors business daily suite of services is complimentary. I also receive compensation from the company for my technical analysis services.
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*** 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.