Daily Plan: Market Review & Focus List (3/5)
Fed Raises By 25Bp! - Market Overview, Industry & Leading Stock Analysis + 4 Helpful Scans
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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
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
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General Market Overview
Volatility was to be expected coming into today’s session with FOMC, where the Fed raised rates by 25bp, coming in line with what was highly expected.
Intra-day volatility was very much present with short-lived moves in either direction, ultimately the indexes closed poorly on the session right around the lows of the session.
Often, the initial reaction to the fed meeting is reversed over the next few sessions - so it is yet to be seen whether this move today opens the door for further selling or is just a fake out.
Still seeing a limited amount of healthy setups following-through well, until that happens I will continue to patiently wait for my pitch and low-risk opportunities to present themselves. Leading stocks are my ultimate feedback.
SPY 0.00%↑ Reverses into the close finishing off poorly after initially reacting positively to what the Fed had to say.
Now back below the 10 and 20EMAs and will be watching whether buyers show up once more if this were to make its way back to the 405 area once again:
QQQ 0.00%↑ Now looking like a failed breakout above the 320 spot after reversing intra-day as it closes below the prior session's low and back below the 10EMA once again:
IWM 0.00%↑ Gapped-up at the open and tried to get going during the session above the 10EMA and 20EMA but was not able to hold on to the intra-day strength.
The only index to close up on the session but did so with a very poor DCR - not the most encouraging sign and now watching whether 171 gets taken out on any further weakness:
ARKK 0.00%↑ Undergoes additional distribution on volume with yet another poor close right at the lows of the session.
Now firmly below this area of prior support and continues its slow bleed to the downside:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
SMCI 0.00%↑ With an excellent reaction to its earnings report to close strong on the session up +28%. Excellent daily closing range when taking into account the poor closes on the indexes as well as other potential leaders:
At the same time it is getting quite extended in the overall context of things as it breaks through its upward trend line:
ONON 0.00%↑ With another good close on the session to finish off above the 32 spot once more - like how the 20EMA has held strong here and really want to see this tighten up some more to provide a low-risk opportunity:
ASUR 0.00%↑ Would be encouraging if this could push through the 14.10 area on strength in order to reclaim the key moving averages and make its way back to prior highs. Failure to do so would indicate that odds favour another move down:
MELI 0.00%↑ Coming together nicely under its descending trend line - currently up on earnings after hours which may make it buyable coming out of this formation:
HIMS 0.00%↑ Has been strong since the recent descending trend line break out and is now coming together well here - wicks show that sellers keep coming in right at the 12 spot and a close above that area may prove sellers are getting exhausted:
ELF 0.00%↑ With a very strong daily closing range to end the session above all KMAs after undercutting the 10 & 20 EMAs on an intraday basis - now right below its descending trend line:
Distribution still a very prominent theme in this market - the number of breakdowns still occurring shows how mixed the overall market has been as of late:
NVDA 0.00%↑ Failed breakout and now back below its 281.5 pivot and closing under the 280 level, buyers came in intraday at the 10EMA
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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