Daily Plan: Market Review & Focus List (22/3)
Bear Flags Setting Up - Market Overview, Industry & Leading Stock Analysis + 3 Helpful Scans
Hi all! đŸ‘‹
In this article I will cover:
General Market Overview
The action displayed by leading stocks with TML potential
Individual Sector Analysis - Which groups are breaking down vs showing relative strength
3 Helpful Scans to get potential leaders on our radar
Links to TradingView watchlists
Personal Portfolio Update
Stocks currently on my focus list with actionable trade ideas
Stockbsessed is neither an investment or financial advisor. Stockbsessed does not provide financial advice and none of the information being provided is to be seen as such.
General Market Overview
The action seen in today’s session completely encompasses why I have been erring on the side of caution heading into this FOMC meeting and focusing on being more defensive to maintain both financial and mental capital.
FOMC Recap:
The fed raised rates by 0.25%:
The unanimous decision puts the key benchmark federal funds rate at a range of 4.75% to 5%, the highest since 2007, from near zero just one year ago. It marks the ninth consecutive rate increase aimed at combating high inflation.
The market reacted poorly to this raise - I am in no way a macro-focused trader, I cannot care enough for that and probably am not smart enough to understand all that - my system is based on keeping things simple and that is the complete opposite, therefore, I continue to focus on price and volume as always.
Heading into today’s FOMC event things were getting a bit ahead of themselves with action getting wild to the upside and so it comes as no surprise that we are pulling back some here - focus is on how that pullback is handled.
Seeing many bear flags setting up both on the indexes and individual stocks which I feature on my focus list - not a good sign when so many are proliferating but will see how they resolve over the next few days.
Extremely poor closes all over with the indexes closing right at / near the lows of the session:
SPY 0.00%↑ Volaltile action here with an intra-day reclaim of the 50DMA which was then lost into the close along with the 10 and 20EMAs. Now decisively below all KMAs and -4.5% away from the key 410 area I have been watching as it may be setting up in this potential bear flag here:
QQQ 0.00%↑ Action clearly still more encouraging here with continued outperformance as we get a retest of this descending trend line. Reversed intra-day after being up +1.5% to close down -1.36% on the session:
IWM 0.00%↑ A continuation of this recent pick up in volume as the selling picks up once more here to lose the 10EMA which is trending steeply downwards - now below all KMAs and right above the key 171 area:
ARKK 0.00%↑ So interesting what a difference one day makes as this goes from looking like a very solid descedning trend line breakout above all key moving averages to a failed breakout below all KMAs quickly. Closes down -4.83% with selling on increased volume:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
Sellers clearly in control here with stocks closing very poorly at the lows of the session:
ONON 0.00%↑ Initially reacted excellently to the high-volume close area with a quick regain of that right off the open as buyers were initially in control to push the stock up +7% intra-day. Sellers were eventually able to push it back down into the close from intra-day highs to end the session up +0.37%:
5 Minutes view:
SMCI 0.00%↑ Follows through on the recent strength following a breakout above this descending trend line:
DUOL 0.00%↑ Follow up strength since breaking out above a descending trend line where I took a position in and continues to act well with strong closes:
PERI 0.00%↑ Follows through on yesterday's breakout to close up +2.36% on a pickup in volume:
Some leading semiconductors showing that they may have gotten ahead of themselves recently as the action got wild to the upside and some recent poor closes with wicks at the top of these candles may be indicating that sellers are re-gaining control:
INTA 0.00%↑ Gives back some into the close to end the session up +0.49% with some more positive action after breaking through its DTL:
AI 0.00%↑ Retests and holds the key 22.50 area mentioned recently after being up +4% intra-day to close still above KMAs and down -2.32% on the session:
MBLY 0.00%↑ May be setting up another potential entry after reacting well to the 20EMA once more - need to see this tighten up here if so:
MELI 0.00%↑ Loses the 10 and 20EMAs in today's session as it closes down -2.77%:
In the following sections of the daily plan I go over additional research in preparation for the next session:
✅ Individual sector analysis
✅ 3 Scans with results to get stocks with leadership qualities on our radar
✅ Personal Watchlist - The best setups from a risk/reward perspective
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