Daily Plan: Market Review & Focus List (4/5)
Continued Distribution - Market Overview, Industry & Leading Stock Analysis + 4 Helpful Scans
Hey!
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
How I identify and use key areas as pivot
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.
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General Market Overview
SPY 0.00%↑ Closes above the key area around 405 which we have been mentioning over the last few weeks after undercutting it on an intraday basis - continued selling over the last few sessions with another poor daily closing range.
Still above the 50-day moving average but below the 10 and 20EMAs, action here has been nothing short of continued distribution since the rejection right around 417.50.
QQQ 0.00%↑ Sellers have been in control here since the failed breakout above 320.75 and now closes below the 10 and 20EMAs.
Looks to be heading back to the key area of previous resistance around the 310 spot and the climbing 50-day moving average, if we cannot hold above today’s low:
IWM 0.00%↑ A gap-down on the session with a continuation of the recent theme of distribution on increased volume here.
Closes below previous support around 171 but was still able to hold the 170 spot into the close. Key moving averages all firmly trending to the downside as sellers remain in control here:
ARKK 0.00%↑ Strong on the session and now back above the area of previous support and the key 35 spot. A display of relative strength compared to the indexes to close up +2.82% with a push above the previous session's high.
Still below the 10EMA here and would like to see a push above 36 rather quickly with a reclaim of the 10EMA:
Chart of The Day
MELI 0.00%↑ Some whipsaw action on the session after a mixed reaction to its earnings report.
Initially gaps-up and pushes to up +4% on the session but eventually fails to hold these early session gains and reverses with sellers maintaining control into the close to end up -5.2% and now firmly below all key moving averages.
This kind of action shows how there continues to be a limited number of stocks that are acting well, breaking out and following through strongly on volume. Until we continue seeing a proliferation of this kind of action - I will remain cautious and not force trades:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
IOT 0.00%↑ Fills the gap from the most recent earnings report and quickly finds buyers on the session. Still below key moving averages with the 20EMA now crossing below the 50-day moving average but would be encouraging to see today's low hold:
AMD 0.00%↑ Volatile action on the session following an earnings-related gap-down in the prior session - filled that gap-down on intraday basis but struggled to hold all the intraday gains and was unable to close back above KMAs:
ONON 0.00%↑ Still top of my focus here and I continue to really like how this is acting and dealing with the overall market weakness - another session with buyers stepping at the 10EMA and proving once more that it is able to hold the 32 spot as it flags out below this descending trend line:
NVDA 0.00%↑ 3rd session in a row closing negative since the failed breakout above the 281.5 spot. Buyers came in right around the 20EMA on an intraday basis - I'd like to see this level hold moving forward to allow it to push up off this area:
RMBS 0.00%↑ Pulls back on the session to retest the key area around 46 after a recent reclaim on its highest volume in over a year (HV1) - good to see buyers come in around this area which coincides with the 50-day moving average and the ability to close decently on the session. Would now like to see a reclaim of the 10 and 20 EMAs:
HIMS 0.00%↑ Really like what this is doing and how it has barely given anything back when considering the overall weakness throughout the market - has not undercut the 10EMA once since the strong breakout above its descending trend line and may now be setting up below the 12 spot:
PERI 0.00%↑ Mentioned the chance of a continued break down a few sessions ago if this were to lose the 35 spot and it is now firmly breaking down on volume:
In the following sections of the daily plan I go over additional research in preparation for the next session:
✅ Individual sector analysis
✅ How I identify and use key areas as pivot
✅ 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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