Daily Plan: Market Review & Focus List (6/3)
Portfolio update, Market Overview, Sector & Leading Stock Analysis + 3 Helpful Scans
Hi all! 👋
In this article I will cover:
General Market Overview60
The action displayed by leading stocks with TML potential
Sector Analysis - Which groups are breaking down vs showing relative strength
3 Helpful Scans
Links to TradingView watchlists
Stocks currently on my focus list with actionable trade ideas
General Market Overview
The overall market may have gotten ahead of itself as today was overwhelmed by negative breadth with poor DCRs all over, a rest was expected here after a few sessions of good gains but would have liked to see more buying into the close after a mixed open. Monday gap-ups are rarely helpful for traders focused on tight-risk management and it typically ruins several good-looking setups as was the case today.
SPY 0.00%↑ and QQQ 0.00%↑ went on to close positive on the session despite reversing into the close with persistent intra-day distribution, good to note that all indexes are still above their 50-Day moving averages as they attempt to start trending upwards:
SPY 0.00%↑ With a reversal candle after gapping-up at the open, key moving averages now pointing upwards and focus is now on the reaction to the 410 area above if we get there:
QQQ 0.00%↑ Poor close after reversing intra-day, but still above the key 296 area marked below - key moving averages starting to point upwards and will be looking for weakness to be bought around there:
IWM 0.00%↑ Relative weakness here as it breaks last session's lows and now below the key 189-190 area marked below as it simultaneously breaks below short-term moving averages:
ARKK 0.00%↑ Closes right under short-term moving averages as it attempts to flag nicely above the 50-day moving average. Have the 41 region as an area of interest marked below to see how it reacts if it gets there:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
Would have expected / liked to see better action from this focus list in today’s session after some very nice relative strength in recent sessions.
YPF 0.00%↑ Have been mentioning this one for some time now and it finally got going today, moving +6.36% to close strong on x1.55 rVOL as it pushed above its DTL:
MELI 0.00%↑ Continued strength here as it pushes out of its short-base:
ELF 0.00%↑ Closes the session -4.14% on x2.35 rVOL, as it found demand right at the 20EMA. Has been a clear RS leader recently and so would want to see it hold this area, continued strong action would be encouraging for the rest of the growth trade in general:
ARHS 0.00%↑ Falls -6.21% in today's session as it underwent distribution on x1.95 rVOL to close with a poor DCR:
XM 0.00%↑ Gaps up after the company receives $18.15 per share buyout offer from Silver Lake and CPPIB, pity to see this get a buyout offer as was looking like it had some potential to be a leader of the next potential uptrend with clear RS lately:
Sector Analysis
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