Using our RSMK based relative strength ranking of key stocks, we track the RS trend of the most liquid optionable stocks (These come from a Chaikin-subscriber-only list from Option Play released once a week). Only stocks with Power Gauges rated "Very Bullish" are included below. This would be one of the final steps when deciding about stocks to put in the watchlist. The market is at resistance but possibly poised to break out of an intermediate term consolidation. I'm looking for stocks accelerating and overtaking the SPY and ACWI price performance on a relative basis, transitioning from red to green in relative rank comparison to these indexes. Look at PHM, already a trade candidate top performing XHB (homebuilder) subsector. After a couple month's consolidation, Pulte may be a stock gathering speed ahead of a market breakout.
OptionPlay most liquid and Chaikin Very Bullish rated stock Relative rank trend
Another stock that looks interesting from an acceleration standpoint is Alcoa. Better current money flow and stronger upside momentum exhibited by the recent OB/OS oscillator reversal outside of the oversold zone, along with a near perfect Chakin Checklist make this a strong candidate for a trend trade over the intermediate term. The 21 EMA - 1.5 ATR would be both my stop and level for defining trade risk. I'd watch for any signs of strength in the US dollar or weakness in the XLB, both of which would be bearish for this stock.
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