Over the past four trading sessions, the market has no doubt looked weak. Prior to what is at this point, a four-day pullback, the markets were sitting at extremes and begging for a pullback. Now that we've got it, it's important to see the manner in which it is pulling back and what we are seeing are the dip buyers on each day of trading buying up the market off of its lows, and wiping away much of the earlier day's bearishness. In fact if you look at the SPY chart, there are 3 consecutive doji candles.
So it is safe to conclude, with the low volume levels, that at this point, the market is experiencing nothing more than a light volume pullback.
I've posted below a list of 15 stocks that I find are setting up nicely to the upside. Put them into your watch-list and what you'll find is that they are either pulling back to a significant support level, consolidating after breaking out (i.e. bull-flag) or on the verge of a breakout through signficant resistance.
Here's the 15 stocks gaining momentum.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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