Daily Plan: Market Review & Focus List (18/4)
Leading Stocks Strong Despite Flat Indexes - Market Overview, Industry & Leading Stock Analysis + Portfolio Update & 4 Helpful Scans
Hi all! 👋
In this article I will cover:
General Market Overview
Chart of The Day
The action displayed by leading stocks with TML potential
Individual Sector Analysis - Which groups are breaking down vs showing relative strength
4 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
I mentioned the importance of coming into today’s session well-prepared for any potential opportunities as the market was potentially setting up for a move in either direction - what is encouraging is that select leading stocks continue to trade on their own merit and decouple from the indexes.
The indexes gapped-up at the open and eventually struggled to hold those early gains, however, stocks I was watching as well as open positions were able to shrug off that intra-day weakness and actually push to the upside into the close and finish the session off strong.
As things stand - the overall environment remains quite consistent in the fact that action is mixed - emphasizing how we are in a stock pickers market which is lacking the broad-based participation we really want to see thus far.
In an ideal environment, there are more sound setups than we know what to do with and rather than just a handful of stocks following through with successful breakouts, there would be strong breadth throughout the market.
The downside right now is that everyone seems to be focusing on the same few stocks - too many eyes on the same names often leads to failed breakouts and lack of follow through but I am taking what I can get as things stand. I continue to trim and trail positions while focusing on finding the right balance between:
Protecting my mental and financial capital
Being patient and giving open positions the space and time to work
Selling portions into strength
Today I entered:
HIMS 0.00%↑ which had a monster breakout
DUOL 0.00%↑ which followed through nicely above its descending trend line
SOUN 0.00%↑ Which I got stopped-out intraday for a -2.43% loss
I discuss these and open positions which continue to act well in the later section - Personal Portfolio Update.
Indexes
On the whole the indexes struggled to hold on to the gains from the gap-up and ended the session with poor daily closing ranges - despite this, it was good to see theSPY 0.00%↑ close above a key area (414) and the IWM 0.00%↑ & ARKK 0.00%↑ find buyers at the 10/20 EMAs. The QQQ 0.00%↑ got a bit ahead of itself trying to push out of its flag and may need some more time hovering above key moving averages before attempting that once more:
Chart of The Day
HIMS 0.00%↑ Really liked how tight this got right below its descending trend line while having 3 positive reactions to the 50-day moving average over the last month.
Still a young-stock with a 2019 IPO that is now working its way up the right side of this large base and currently +300% of the May 2022 low.
Moves well when it gets going and had a very encouraging breakout today to close up +10.33% on +318% relative volume which I bought at 10.05 and a stop at 9.93 - risking just -1.20%:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
MBLY 0.00%↑ Excellent action - this is what we want to see a proliferation of. Tightened up nicely over the last few sessions and pushed out today with an OEL (open equals low candle) to close +5.58% on a +166% volume increase.
Had this as my focus heading into today's session but didn't like how it gapped up above the pivot and quickly ran at the open - if I cannot manage risk tightly I move on with no FOMO:
SMCI 0.00%↑ Had bought this descending trend line setup last Friday and closed it around breakeven because it did not give the push I wanted to see - seeing stocks run without you IS AN ENCOURAGING SIGN that the health of the market is improving! Would like to see this tighten up at its highs now:
ONON 0.00%↑ Bought this in yesterday's session after a positive reaction to the 30 area and now liking how it pushed off this level above its descending trend line and closed strong +4.79% on the session at the highs of this consolidation:
AEHR 0.00%↑ Closed strong up +4.14% and now back above the 10EMA and right under the 30.50 pivot:
INTA 0.00%↑ More encouraging action with a gap-up above yesterday's inside day highs to close +2.98% while making new all time highs:
IOT 0.00%↑ Follows through on yesterday's breakout with another strong showing today to close +2.95% on above average volume. A mediocre close but it is to be expected to see some profit-taking up here:
DUOL 0.00%↑ Had a great retest of previous resistance in the last session along with a shakeout and close above the 20EMA - I mentioned how shakeouts can provide fuel for a move to the upside and it is very encouraging to see this follow through above this descending trend line in today's session:
NVDA 0.00%↑ Buyers came in where they needed to in order to support this around the 20EMA to then gap-up in today's session and print the highest price in over a year! Couldn't hold all its gains into the close but was still able to end the session +2.46% on above average volume:
ALGM 0.00%↑ Failed to follow through to the downside and time will prove whether this was just a shakeout or the beginning of more weakness - would like to see a quick reclaim of the KMAs if this is a shakeout:
TMDX 0.00%↑ Very similar to above:
FSLR 0.00%↑ An inside day with strong DCR where intra-day weakness was bought up - now consolidating at the top of its base and may be getting ready to push out once more:
AI 0.00%↑ Tried pushing above the 23 area but struggled with this level to close just negative on the session and below this key area as sellers came in right around the 10EMA:
TSLA 0.00%↑ Continues struggling with key moving averages and closes below them once more with this inside day - earnings tomorrow will more than like decide its fate going forward:
In the following sections of the daily plan I go over additional research in preparation for the next session:
✅ Individual sector analysis
✅ 4 Scans with results to get stocks with leadership qualities on our radar
✅ Personal Portfolio Update
✅ Stocks currently on my focus list with actionable trade ideas - The best setups from a risk/reward perspective
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