Daily Plan: Market Review & Focus List (21/3)
Encouraging Breakout Action - Market Overview, Industry & Leading Stock Analysis + 3 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
3 Helpful Scans to get potential leaders on our radar
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
Have been saying for some time now that individual stock action was more encouraging than what the indexes would lead you to believe, further stressed on this in yesterday’s newsletter covering my focus heading in to today’s session and it is really encouraging that the vast majority of these stocks broke out of their patterns and followed through to the upside.
What makes things difficult is the highly anticipated FOMC meeting tomorrow where increased volatility and news-driven action is highly expected - for this reason I decided to play today more cautiously and make no trades but rather hold on to my current positions despite having actionable setups on my radar which I have been tracking for a while. The positive action displayed today is by no means an all clear or signal to go fully long - but rather supports the thesis that we may be entering a period where setups are following through once more.
As with all other FOMC meetings and volatile events - I will most certainly not be ready to jump in at the first sign of a positive reaction but will instead let things settle down, ranges form and volatility decrease as I wait for my edge to show up clearly - which for me, is tight areas to manage risk against. There is absolutely no place for FOMO now or ever, detach yourself emotionally from the need to be right and see instant gains and instead focus on a well-defined process in your trading system.
SPY 0.00%↑ Gapped up above this descending trend line and kept pushing to close up +1.31% while reclaiming the 20EMA. Short-term moving averages now curling to the upside which may indicate possible trend change. Still watching the 410 area for confirmation:
QQQ 0.00%↑ Clearly the strongest index here with a continuation of its recent outperformance as it decisively breaks above this descending trend line mentioned in yesterday’s report - went out near the intra-day highs with a strong DCR to close up +1.43%:
IWM 0.00%↑ Has been the weakest index as of late as small-caps were struggling to get going, despite having a larger % gain on the session than the above 2 indexes - the daily closing range shows that sellers quickly pushed down intra-day gains to close below the 10EMA:
ARKK 0.00%↑ Have been mentioning this important overall flag structure here and it is good to see a nice and clean breakout of this descending trend line as KMAs got tight and acted as a launchpad for price to close up +5.55%:
$BTC Holding its gains well up here as it attempts to flag out without giving much back:
Chart of The Day
ONON 0.00%↑ The market reacts positively to its earnings report as this recent IPO gaps-up +26% on 27.31 million shares - a +896% increase above average and its highest volume ever. Now at an important area on the weekly chart and want to see how it handles any potential upcoming weakness:
“On Holding AG gained more than 26% after the athletic footwear company reported a 68.7% year-over-year increase in 2022 sales to 1.22 billion Swiss francs, topping 1 billion for the first time ever. It also sees sales this year reaching 1.7 billion francs, beating Wall Street estimates looking for 1.52 billion francs in 2023 sales.”
Weekly:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
Would have preferred some additional tightness in these leading stocks heading into tomorrow’s FOMC meeting - however, market rarely does what the masses want and it is a very encouraging sign when you see so many break outs with strong closes ahead of such a highly anticipated event where investors may be fearful to hold on to / buy positions and take on additional risk.
AEHR 0.00%↑ Really flexing here showing raw strength as it broke out above this descending trend line mentioned yesterday to close up +15.37% on increased volume
SMCI 0.00%↑ Follows through on the descending trend line in yesterday’s session to close at the highs up +9.88%
AI 0.00%↑ Have mentioned the importance of this 22.50 area and it is encouraging to see it push through this level and close strong up +7.92% while reclaiming the KMAs:
TSLA 0.00%↑ Reclaims the key moving averages as it got going after pushing out above the key 186 area I mentioned recently and now decisively gets out of this previous 186-176 range:
INTA 0.00%↑ A clear relative strength leader lately which gets going once more as it breaks above this descending trend line after pulling back nicely to the 20EMA:
PERI 0.00%↑ More encouraging action with another break above this descending trend line after a short-lived and well-supported pullback
MELI 0.00%↑ Gets going once more as it reclaims KMAs and pushes above this descending trend line:
IOT 0.00%↑ Just barely (0.04) undercuts the low of earnings day gap-up as buyers quickly step in to support this at the 20EMA and close it at the upper end of the trading range up +2.46%
FSLR 0.00%↑ Had this setup as a top focus into today's session and acted well to gap above this descending trend line, hold its gains and close strong on the session above all KMAs:
RMBS 0.00%↑ Pushes out above this orderly consolidation while breaking out above its DTL, KMAs continue to trend up nicely:
ON 0.00%↑ Intra-day weakness was supported by the 10EMA and pushed to close nicely above this key area that was proving to be resistance over the last few sessions:
Some semiconductors may be showing that they could have gotten ahead of themselves with some difficulty breaking out once more - some deserved rest may be needed here to fuel another push up:
ATAT 0.00%↑ With another close above the important 23 level that I have been mentioning as of late - these repeated wicks to the downside may indicate that it could just be a matter of time until sellers take control
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