Daily Plan: Market Review & Focus List (7/3)
Poor breadth and weak closes - Market Overview, Sector & Leading Stock Analysis + 3 Helpful Scans
Hi all! 👋
In this article I will cover:
General Market Overview
The action displayed by leading stocks with TML potential
Sector Analysis - Which groups are breaking down vs showing relative strength
3 Helpful Scans
Links to TradingView watchlists
Stocks currently on my focus list with actionable trade ideas
General Market Overview
Not the most ideal action as the indexes clearly underwent distribution closing the session at the lows of the day and losing some key areas such as the 50-day moving average on the SPY 0.00%↑.
Still seeing little breakout follow through and so not much change from last year’s pop and drop environment, see YPF 0.00%↑ below for one of the many showing lack of follow through:
This is the reason progressive exposure is so important, just because the environment may have been looking more productive for a few sessions does not mean to jump in with a large portion of your portfolio mitigating risk management because you think this may be the turning point in the market. Always listen closely to the feedback the market is providing and let your stocks finance additional risk, you need to “earn” the right to increase your exposure.
As shown by NYSE breadth metrics above - it is hard to make substantial progress when the market backdrop is so negative.
SPY 0.00%↑ Closes right under the 50-day moving average after a recent reclaim and now has the short-term moving averages pointing downwards, showing that sellers may be winning here once more:
QQQ 0.00%↑ Retesting a key area and finding demand just at the short-term moving averages. 50-day moving average still trending up nicely:
IWM 0.00%↑ Finding support at the 50-day moving average which is trending up, but now below a key area marked below and the short-term moving averages:
ARKK 0.00%↑ A break of yesterday's lows and simultaneously loses the short-term moving averages, still below a key area marked below:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
ELF 0.00%↑ With a nice shakeout and quick reclaim of the 20EMA as it went on to close strong on the session after breaking yesterday's lows. Will now be watching how it acts vs the base pivot around 75.75:
Keep reading with a 7-day free trial
Subscribe to Stockbsessed to keep reading this post and get 7 days of free access to the full post archives.