Daily Plan: Market Review & Focus List (9/3)
Downside Reversals All Over - 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
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
Current market environment is the epitome of uncertainty and volatility, completely unable to certify a trend of any sort as of late and has been a choppy mess that trends in certain directions for just a few days - this is far from an ideal trading environment and the extreme lack of follow through on breakouts comes as no surprise when considering the very poor breadth metrics shown above, a difference of -2249 declining issues overall on the NYSE! How could you expect to make progress in your equity when the environment is completely against follow through on the long side?
Best thing to do is wait for your pitch and protect your mental capital as your edge shows up clearly in a better environment.
A valuable tweet attached below from
relates to what I’ve said above:SPY 0.00%↑ Downside reversal here to close the session poorly at the lows down -1.84%. Slices through both the 50 and 200MA as momentum has clearly shifted to the downside, short-term KMAs pointing downwards further back this up:
QQQ 0.00%↑ Initially pushed above the DTL mentioned yesterday and was up around +1%, then went on to reverse later in the session to close at the lows down -1.73%. Still above the 50 and 200MA but broke short-term KMAs decisively:
IWM 0.00%↑ Clear distribution here as it breaks the 50MA and gets sold down hard right to the 200MA to close the session down -2.78% right at the lows:
ARKK 0.00%↑ Falls -4.16% as it breaks the 50MA and closes at the lows of the session, now firmly below all key moving averages with the 10/20 EMA pointing downwards indicating the intermediate-term trend:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
Distribution all over as not a single stock in this focus list managed to close up on the session, on average the above stocks closed the session -3.61% with disappointing DCRs. Difficult to make any meaningful progress to our equity curves in such environments, which Mark Minervini describes as hard penny environments - and best to wait for the easy dollar environments where the overall market has a positive backdrop.
AI 0.00%↑ Thought this one had potential and got involved at a good spot but the market says otherwise as it broke the earnings gap-up low of day = opinions < facts always. Also breaks down the 10 and 20 EMA in a single session with poor DCR:
SMCI 0.00%↑ Tried pushing out of this short-term flag right above the previous base pivot and got sold into strength pretty quickly:
LSCC 0.00%↑ Pushed out early in the session to new highs, up +2.5% at one point but another which reversed into the close to end the session at the lows:
ALGM 0.00%↑ The examples of failed breakouts just from the list above keeps on growing, tells you all you need to know about this environment:
FSLR 0.00%↑ Imperative to track relative strength at all times and this continues to stick out here as it stays above previous session's LOD:
MBLY 0.00%↑ Pushed out above this DTL highlighted in the previous focus list and was up +4.5% at one point, however, the lack of follow through on this breakout caused it to reverse intraday to close negative on the session and now right at the 10/20EMA:
MELI 0.00%↑ Breaks below previous base pivot after retesting and holding that area, also slices through the 10EMA to close poorly at the lows of the session - watching how it acts around the 20EMA:
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
✅ My personal trading plan
✅ Personal Watchlist - The best setups from a risk/reward perspective
Sector Analysis
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