Daily Plan: Market Review & Focus List (14/3)
Wild bounces but NO FOMO - Market Overview, Industry & 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
Individual Industry 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
An interesting day in the market as buying pressure was clearly stronger than selling however not too much to get excited about just yet. While not allowing any bias to cloud my judgement, this bounce does look suspect to me as the market is finding difficulty at key areas.
My focus, as always, is on individual stock action and on whether breakouts are following through or not - it is essential to continue focusing on your process and waiting for setups to form. Right now, ranges are too wide and volatility is too present to allow tight risk management, that alone is a major red flag for me and my system and quickly allows me to identify that this market is offering sub-optimal r/r.
No FOMO whatsoever here as these wild bounces are not actionable for my system - which is focused on areas of tightness. If you are a trader who simply buys areas of potential support at moving averages there may be abundant opportunities for you but I prefer to wait for my edge to show up clearly and tell me that I can enter with large size:
SPY 0.00%↑ A positive that the 10/20 EMAs are starting to somewhat flatten out but today’s strength was still capped by these key areas. Still quite a distance off the 50DMA up above and about -4.5% below the 410 area of interest. All things considered it closed quite well on a pick up in volume:
QQQ 0.00%↑ Stronger here as we see a reclaim of the 10 and 20EMA and now +2.2% above the 50DMA. Reclaimed the 296 area I have been watching closely and closed strong on above average volume, encouraging action:
IWM 0.00%↑ Closed poorly off the highs of the day after failing to fully hold the gap, small-caps continue to look weaker here as the 10/20EMA continue trending downwards along with price:
ARKK 0.00%↑ Struggling with the cluster of KMAs right above as today's strength was capped right at the 50DMA / 10EMA:
Leading Stocks Analysis
I am linking the leaders watchlist in tradingview for your convenience, here
Overall encouraging action with the extreme majority of stocks above showing buyers were in control today - made some adjustments to the above table to include INTA 0.00%↑ and ANET 0.00%↑ as they are acting well and showing some clear relative strength, and most importantly, right at 52-week highs:
AEHR 0.00%↑ Up +7% on the day but struggling with the 20EMA right above:
INTA 0.00%↑ Liking how this young stock is holding up as it shows clear relative strength right at 52-week highs. A nice base since IPO - see the weekly chart below:
TSLA 0.00%↑ Mentioned this in yesterday's focus list - did exactly what I wanted to see as it proved demand was present to push it above yesterday's high of the session and close strong +5% today:
LSCC 0.00%↑ Followed through on the bounce off the 20EMA to close strong on volume:
NVDA 0.00%↑ Range bound between 2 key areas marked below but liking how it followed through after being bought up at the 20EMA:
ANET 0.00%↑ Some nice strength here as it quickly gets going out of this base as soon as market pressure eases off a bit:
MBLY 0.00%↑ Follows through nicely as it was supported at the 50DMA last session. Now reclaims the 10 and 20EMA:
FSLR 0.00%↑ Continues to hold the key AVWAP from earnings and 10EMA:
In the following sections of the daily plan I go over additional research in preparation for the next session:
✅ Individual sector analysis
✅ 3 Scans with results to get stocks with leadership qualities on our radar
✅ Personal Watchlist - The best setups from a risk/reward perspective
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