Daily Plan: Market Review & Focus List (27/4)
Mega-Cap Tech Continues Leading - Market Overview, Industry & Leading Stock Analysis + 4 Helpful Scans
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General Market Overview
Quite an interesting day as the indexes gapped-up pretty big and were able to hold that gap, build on in it as buyers stepped in throughout the session, and ultimately close strong on the session.
The downside to this is that we are still seeing poor breadth and limited participation in this rally - the opposite of what we want to see with new lows outpacing new highs:
The indexes are acting well, and we saw some undeniable strength in the market covering the true damage that is occurring under the surface as these mega-cap liquid stocks are getting bought up on a positive reaction to the META 0.00%↑ earnings report, hiding the distribution occurring under the surface in the process:
All of these below were up pretty big on the session - telling a different story to the lack of sound setups I am seeing:
AMZN 0.00%↑ Currently down on earnings after-hours after initially reacting very well and then reversing.
Indexes
SPY 0.00%↑ Strong gap-and-go move here - no easy task to gap-up and close +1.99% right at the highs of the session. Good to see a quick reclaim of the 10 and 20EMAs. Keeping things simple just looks like a retest / shakeout of an important level of previous resistance right around 405:
QQQ 0.00%↑ Similar to above in that if keeping things simple just looks like a retest of the key area around 310 with a quick reclaim of the EMAs and already back to recent highs. Now at resistance and will be important to see how we deal with it here:
IWM 0.00%↑ Finds buyers at a level of previous support around 171 and was able to quickly push off that area in today's session - closes well on the session but still below declining EMAs:
ARKK 0.00%↑ Closes with this inside day after continued weakness since losing its key trend line on the 20th April - key moving averages all heading downwards but would not surprise me to see this catch some what of a bounce here:
Leading Stocks Analysis
Average of how the below stocks closed: -1.45%
I am linking the leaders watchlist in tradingview for your convenience, here
SMCI 0.00%↑ Nice inside day and up to close above the previous session's highs. Good to see buyers show up around here and reclaim an area of previous resistance. Still about -3.1% away from the 50-day moving average and 10EMA:
HIMS 0.00%↑ Action like this shows a better picture of what is going on than what the indexes are portraying - a gap-up in a young-stock with solid fundamentals which has been acting well recently and fails to hold its gains - closing at the lows of the session:
PERI 0.00%↑ An inside day on the session which may be setting up within this potential bear-flag here. Still pinned down by the 50-day moving average and also below the declining short-term EMAs:
AMD 0.00%↑ With a solid reversal on the session as buyers stepped in to push this back up from -2% on the session to close positive with a strong daily closing range. Want to see how it acts if it makes its way back up the the ~88.50 area of previous resistance which also coincides with the 10EMA and 50-day MA:
FSLR 0.00%↑ Inside day on the session which closes right at the 50-day MA after a gap-down in the prior session - 10EMA crossing below the 20EMA and may have some further weakness ahead if it fails to hold today's lows. Currently down after-hours on earnings:
ANET 0.00%↑ With a nice undercut of the 50-day MA to shakeout and close back above it. Strong daily closing range on the session to shake-off intra-day sellers to close positive after being down -2% at a point:
NVDA 0.00%↑ Not the worst action here as it holds key areas once more - buyers came in intra-day right around the 20EMA to push this back up and close above the 10/20EMAs:
MELI 0.00%↑ Rejected once more as sellers came in just under the 20EMA to follow up the recent weakness here with another poor close as it potentially sets up a short entry:
IOT 0.00%↑ Wanted to see how this acted right around the 50-day MA and all things considered this close was pretty encouraging - good daily closing range with buyers stepping in to end well off the intra-day lows and above the 50MA after undercutting it during the session. Watching today's low as a tell moving forward:
ONON 0.00%↑ My main focus currently and excellent action on a closing basis - encouraging to see the early morning weakness get bought up right at the 20EMA and quickly push off that area on an intraday basis. Encouraging to see this close above the key area of 32 especially after being down -5% during the session:
MBLY 0.00%↑ With a negative reaction to its earnings report but was able to go out at the highs of the session. This reaction along with PI 0.00%↑ CROX 0.00%↑ OPRA 0.00%↑ WOLF 0.00%↑ and several others showcase the difficulty of the overall trading environment we are in and how holding into earnings continues to be risky:
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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