Chart of the Day: PANW and Relative Strength During Market Selloffs

Today's chart of the day is PANW, which gapped and broke out over it's 50 dma yesterday, and is holding that level this morning.

This makes PANW a relative strength stock. During market selloffs,  it pays to keep a list of relative strength stocks that have the potential to beat the market and will likely be the next big momos if the market recovers.

Check out my 14 tips for handling market selloffs and Bullsonwallstreet.com

Keep an eye on on the 50 dma level. If it holds, PANW is at a good entry level and could retest all time highs.

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Today's Entry: STP

I entered STP today on weakness. The stock has shown strong strength in relation to the market, and shows a strong volulme pattern on the recent move up. My target is the September high.

Trade: Partial Profits in MOS

I took partial profits in MOS today, selling half my shares at $43.10 (+10.2%). As noted in a Trade Alert sent to my subscribers, my entry was at $39.10. I have moved my stop up and will let the rest "ride". This is now a "free trade". I've locked in my profit with the possibility of more.

My reason for entry was quite simple. The market is oversold and the ag sector has shown strong relative strength in relation to the market.



I also took full profits in SIGM. I'll have more details on this trade later.

Energy Looks Good: PBR

Energy stocks are showing good accumulation patterns while coming off bottom price patterns. Of the energies that I monitor, PBR is showing the best relative strength compared to the sector. It is at 30 day highs.  I'd like to enter on pullback to support.

Education Stocks Showing Accumulation and Relative Strength

A few sectors asserted themselves during last week's market up move. Education stocks are on fire and showing buying interest from the big boys. While most stocks are coming off bottoms and nearing resistance levels, education stocks are near recent highs.

Focus list stocks include EDU, DV, CPLA and APOL.

Quick Trade Update: QLD and Commodity Shorts

I took partial profits in a few of my commodity related shorts and entered QLD this morning. I mentioned QLD in last night's trade report. As noted in the report, the Nasdaq has recently held up better than the S&P 500.







Recent free trade reports:

July 15

July 14

The Game Plan for Shorting Agriculture

As I previously discussed, I am no longer bullish on the ag sector. As DBA shows, the ETF is showing a distribution pattern common among tops. This weekend I analyzed the sector in search of shorts and came up with three names that head my watchlist: TRA, DE and MON.

Common among these three stocks are broken trend lines, distribution patterns and poor relative strength compared to the sector.

Take a look at the six charts below:



Compare the five stock charts (TRA, DE, MON, CF and MOS) to the ETF DBA. Notice that TRA, DE and MON have broken either a major trend lone or moving average. They all show pronounced downside volume. Most importantly, they all started making lower highs prior to DBA's recent pullback. Compare them to DE and MOS, which still look technically sound.

When shorting, I like to go with the laggards within a group. Therefore, when I decide to short the ag complex, I will likely do so with either TRA, DE or MON.

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