Daily Plan: Market Review & Focus List (3/4)
Resilient Market As Dips Get Bought - Market Overview, Industry & 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
A continuation of the recent encouraging action we have been seen on this side of things. Bear markets open strong and close weak, bull markets open weak and close strong; make of that what you wish but the facts are right in front of you - eliminate any sort of bias - it has no place in your trading. Do you want to be right or do you want to make money?
Now trending well above the 50-day moving averages for the most part, with strong breadth metrics despite mixed closes on the indexes - liking the strong daily closing ranges all around.
Not to say that the market does not still have risks with some distribution in recent leading stocks such as FSLR 0.00%↑ and TSLA 0.00%↑, but the positive action to the upside has been largely overwhelming the action to the downside.
SPY 0.00%↑ Now +8% off the Mid-march low as it continues marching up and pushing through key areas. Moving averages are trending nicely with the 10EMA crossing above the 50DMA today as we have our 4th up day in a row:
QQQ 0.00%↑ Closes down on the session but just barely to print an inside day - supportive action to close this at the highs of the session as the moving averages all trend well to the upside in the right order:
IWM 0.00%↑ Not the strongest close but another session above the 20EMA as it continues curling to the upside along with the 10EMA:
ARKK 0.00%↑ Watching the 40.50 area as a tell here but liking how the intra-day low was supported by the 10/20EMAs to push and close the session above the 50DMA:
Chart of The Day
Have been studying the use of AVWAP for some time now after getting put on by Brian Shannon during this interview I did with him:
Today I felt confident in what I had learnt through an AVWAP study I have been doing and decided to put it into practise on an intra-day basis by taking a position in GFAI 0.00%↑ after seeing how well it was being respected:
Leading Stocks Analysis
Can’t keep these in-demand stocks down for long as dips keep getting bought quickly, really liking this rest day most of the stocks below took as a well-needed pause after impressive quick moves up, while others such as SMCI 0.00%↑ and PERI 0.00%↑ followed through even more:
I am linking the leaders watchlist in tradingview for your convenience, here
SMCI 0.00%↑ One which continues to act very well... evident relative strength to close the session +5.79% going out right at the highs on an encouraging increase in volume. Key moving averages trending nicely along with price while dips keep getting bought:
PERI 0.00%↑ Can't keep this one down for long as it follows through on its descending trend line breakout to print new highs once again:
IOT 0.00%↑ Continues acting well, now up 4 sessions in a row and so may need some additional time up here to allow KMAs to catch up before setting another actionable spot:
NVDA 0.00%↑ Also up 4 sessions in a row as it continues marching upwards above key moving averages:
AI 0.00%↑ Impressive to see such little give-back after running +21% in a single session last Friday. In no way is it actionable up here but cannot ignore another strong close on volume here, watching this momentum leader closely:
ONON 0.00%↑ Was watching how this acted around the 30 level but had my hands full with other positions and didn't want to take on unnecessary risk - failed to get going above its DTL but watching how it handles this moving forward:
DUOL 0.00%↑ Retests its recent breakout and holds that area very well as it finds buyers and goes on to close with a strong DCR:
TMDX 0.00%↑ Getting really tight here with an undercut and close above the EMAs as it sits right below this descending trend line:
Semiconductors continue to show potential leadership with encouraging action as demand comes in these stocks at key areas:
AMD 0.00%↑ Now setting up once more below its descending trend line:
FSLR 0.00%↑ With a failed breakout that got sold into pretty hard
TSLA 0.00%↑ Pushed down -6% on volume to close at the lower end of the session's trading range. However, it is also very encouraging to see a mega-cap stock get hit in such a way and not lead to generalized widespread distribution in the market - this is something that would have happened up until not long ago and so we continue to receive evidence and feed back that we are entering a healthier market environment:
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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