Going with the Flow

After another in a long line of V-shaped rallies for equities over the last few years, some consolidating seems appropriate if not overdue. 

I am not in a rush to push longs into the weekend with perhaps some holiday complacency needing to be worked off into Thanksgiving next week. However, you can be sure I am going with the money flow of rotations in recent weeks. 

Specifically, I am keeping close tabs on the coals, steels, financials, brokers, truckers, among other standout plays for November as we enter the home stretch of 2016. 

While sentiment seems a bit less bearish than it has been during prior rallies, the amount of breakouts we witnessed in the above parts of the market on surging buy volume compels us to stalk their respective consolidations vigilantly in order to identify lower risk, secondary entry points. 

A name like SXC, in the coal arena, is one such example noted on this website and also as a name we played with Members. 

On the updated daily chart, below, Suncoke is benignly consolidating its recently overbought conditions on declining sell volume (bottom pane of chart). As long as this remains the case, it behooves us to scout out another entry, as well as plenty of other similar ideas which I will highlight for Members over the weekend.