Daily Plan: Market Review & Focus List (29/3)
Encouraging Action Continues - Portfolio Update, Market Overview, Sector & Leading Stock Analysis + 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
Apologies for posting today’s update later than usual but caught up with work and an interview with Oliver Kell which I will be releasing this weekend - super excited to get that out to you guys!
The recent feedback from the market continues to be very encouraging with some of the healthiest action I have seen over the last few months.
In no way is this an all clear, a signal to force things or most certainly not a time to disregard basic risk management principles because of what you “think” the market will do - as always, follow your setups and let the market pull you in, but let your own positions give you the right to size up and increase exposure. You have to treat this as though you are proving to yourself that the market is “worthy” of your capital.
Impressive action today as:
SPY 0.00%↑ reclaims the 50-day moving average - now above it along with the QQQ 0.00%↑
Several leading stocks break out on volume and go on to close strong on the session
Sectors show a widespread breadth thrust to the upside - all but one of the sectors I track closed positive on the session.
This is what we want to see - broad-based participation from leading stocks and individual sectors. My main focus is always on how leading stocks are acting and that was excellent.
SPY 0.00%↑ A nice gap-and-go move on the index here to reclaim the 50-day moving average. Always impressive when the indexes are able to maintain such large gaps and go on to close even stronger. Would certainly like to see today's low hold:
QQQ 0.00%↑ Mentioned the importance of the 311-312 area heading into today's session and did not expect that to be reclaimed so soon. That is a positive expectation break and adds to the encouraging feedback the market is giving. KMAs trending up nicely:
IWM 0.00%↑ A solid reclaim of the 10EMA which is now curling upwards. Looking like the recent low was an undercut and rally of the prior base low acting as a shakeout:
ARKK 0.00%↑ Liking the reclaim of the 10 & 20EMAs after losing them recently - now has the 50-day moving average up above after breaking above its descending trend line:
Chart of The Day
Unfortunate to see this go on to break out with authority in today’s session after I attempted to position in it yesterday and opted to sell before the close due to not having sufficient cushion to carry that risk overnight - part of the game and we move on quickly, can’t catch them all. Regardless - really like how it got going today to push out above its descending trend line in this high-tight flag:
Leading Stocks Analysis
Very positive feedback from this area of the market - look no further than the daily closing ranges (DCRs) and percentage change on the session, great breadth expansion to the upside with all but 2 of the above closing positive.
I am linking the leaders watchlist in tradingview for your convenience, here
RMBS 0.00%↑ very nice push out after responding well to the 50-day moving average in the previous session. Continues showing relative strength as it makes new highs while trending well:
AEHR 0.00%↑ A big push to the upside to put in an inside day after finding buyers right at the 10EMA intraday - now has a descending trend line of note right above:
$DUOL Tightening up very nicely at its recent highs:
Last 4 closes:
136.51
136.60
136.90
136.99
Mentioned the importance of reclaiming the 50-day moving average moving forward in yesterday’s update - excellent to see that happen quickly in the last session with a strong upwards thrust to simultaneously reclaim the 10 and 20EMAs. Trying to tighten up in the context of its overall larger pattern below this descending trend line:
AI 0.00%↑ Flagging very well above all key moving averages as it gives little back after gaining around +20% after pushing through the important 22.50 area we had mentioned:
LSCC 0.00%↑ Continued strength as it closes above this key area around 92.50 after finding support nicely at the 20EMA:
ONON 0.00%↑ Great action here with impressive volume lately since gapping up +26% on earnings. Continues to respect the high volume close well as it flags out up here:
IOT 0.00%↑ Another recent earnings gapper that is flagging out nicely - now back above all key moving averages after losing the 10/20EMA for a short while:
FSLR 0.00%↑ Very impressive recovery of what looked like a breakdown of this pattern on an intra-day basis. Buyers came in to close the session +2.5% and above this descending trend line after a brief shakeout of the 10EMA:
TSLA 0.00%↑ Continues to hold key levels:
10EMA
20EMA
Prior resistance around the 186 region
This is all encouraging feedback from the market. Now watching for a potential descending trend line break:
MELI 0.00%↑ Mentioned this potential setup coming into this session and this is more encouraging feedback from the market to see an institutional favourite stock break out above its descending trend line and close strong on the session:
NVDA 0.00%↑ Very similar to above:
AMD 0.00%↑ With an inside day after finding buyers right at the 10EMA and below its descending trend line. Has been very strong lately:
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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