Daily Plan: Market Review & Focus List (12/27)
With Sector analysis, Leadership analysis & Personal Portfolio Updates
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
A Personal Portfolio Update
Links to TradingView watchlists
Stocks currently on my focus list with actionable trade ideas
General Market Overview
SPY 0.00%↑ and IWM 0.00%↑ both with potential bear flags forming with a series of poor closes and undeniable recent distribution as KMAs continue to trend downwards.
QQQ 0.00%↑ clearly the weakest here and that alone should be enough of an indication of the kind of market environment we are currently in, growth is undoubtedly out of favour while the safer / slower-moving areas of the market are showing strength.
Leading Stocks Analysis
One can easily see that many of the stocks I consider to have leadership potential would be close to their 52-Week highs (and preferably all time highs). This is due to the reduced overhead resistance when compared to stocks that have undergone massive corrections from their highs. The less overhead resistance in a stock, the less buying pressure would be required to push through said resistance and eventually continue to new highs.
This list above is down an average of -2.95% between the ETFs, not that we didn’t already have enough, but this is another sign of how unfavourable current market conditions are when such stocks with leadership potential are struggling so much to make any significant progress.
The leading stocks are always the best indication of market health and this tell us all we need to know.
I have attached this watchlist for your convenience, here
Sector Analysis
The above list was down an average of -0.67% today, sectors way off their highs such as Internet XWEB 0.00%↑ - continue to struggle and show relative weakness, while sectors closer to the highs continue to lead - such as energy XLE 0.00%↑.
There was some very evident weakness in solar which until recently had been showing some nice relative strength - this now appears to be following the same pattern as some previous leading stocks in that sector such as ENPH 0.00%↑ and SEDG 0.00%↑, as TAN 0.00%↑ is also breaking down:
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