Daily Plan: Market Review & Focus List (1/3)
Leaders outperform the market - Market Overview, Sector & Leading Stock Analysis + 3 Helpful Scans
Hi all! 👋
In this article I will cover:
General Market Overview
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
While select stocks on my focus list do continue to act well and outperform the general market, it is difficult for these few strong stocks to continue swimming against the tide for a prolonged period of time. For a healthy and sustained uptrend to be established, we require broad participation in the form of encouraging breadth metrics - which was not the case today with 1333 advancing issues and 1702 declining issues on the NYSE.
SPY 0.00%↑ Second close in a row living below the 50MA, 10 and 20EMA are now decisively pointing downwards and continue to emphasize that the short-term trend is currently down:
QQQ 0.00%↑ Continues to struggle with the important 296 key area I have been mentioning. Short-term moving averages continue to acts as resistance as they continue to trend downwards - 10EMA now crossing the 20EMA to the downside, further confirming this.
IWM 0.00%↑ With some better structure than the above 2 but still struggling with short-term moving averages and previous resistance right above. Would like to see a push above today's high and the 190 region along with a reclaim of the KMAs.
ARKK 0.00%↑ Gets rejected by short-term moving averages which may be a retest of this potential overall bear flag breakdown pattern marked below:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
FSLR 0.00%↑ Gaps up on a positive earnings release to close the session +15% with a strong DCR. Has been a relative strength leader throughout a large portion of this bear market and continues to move against the overall trend in the indexes.
AI 0.00%↑ -8.2% as it breaks down through the 21EMA. Talked about the danger of having too many eyes on a single stock in this scenario. Failed to get going twice in the last 2 sessions which was a warranted warning for possible distribution - which showed up in today's session:
AEHR 0.00%↑ Some nice follow through as it breaks above yesterday's high and closes strong on the session +7.9%
SMCI 0.00%↑ Flagging out in this short-term consolidation after breaking out from a structured base a few sessions ago. Giving little back and closes strong shows that there is clear demand here.
ATAT 0.00%↑ Following the potential early entry via a DTL breakout in yesterday's session, this may now be setting up to provide an alternative entry via a break of the horizontal resistance marked in the 27.50 region:
ACLS 0.00%↑ Gives no time to form a sound base and continues marching on, always a good sign when a stock gets right back on the move quickly:
LSCC 0.00%↑ Forming a pivot after finding support at the 20EMA following a strong move since bouncing off the 50dMA:
Sector Analysis
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