Hi all! 👋
Helpful to keep the bigger picture in context here and realize that we have had several weeks of strong action throughout the market with many leading stocks getting quite extended from their key moving averages.
A pullback towards key areas of support should not only be expected, but also welcomed - strength is shown much more clearly during pullbacks and should provide us an opportunity in identifying the strongest names in the market!
2 Themes I remain focused on here include semiconductors and bitcoin-related stocks:
Semiconductors
No denying the recent strength this has been showing as we now pullback to the 20EMA. A key area which could go either way after this inside day, however I would like to see buyers show up and defend this KMA it has respected since the mid-May reclaim:
Bitcoin
Clear momentum leadership here lately as we now see such stocks pulling back to their KMAs - good to see strong closes off the intraday lows last session however this recent test of the 50DMA in bitcoin may cause additional weakness in these related stocks here:
General Market Overview
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SPY 0.00%↑ Continues pushing key areas on the weekly chart and can see that we got slightly extended from key moving averages on the daily chart - would like to see a low volume pullback into the 10EMA here after this poor closing inside day last session:
QQQ 0.00%↑ Pure strength with higher lows along the way here but can clearly see that we got extended and had a weekly reversal to close poorly at the lows of the day and week. Now below the 10EMA and watching for buyers to show up at the 20EMA:
Similar pictures with ARKK 0.00%↑ and IWM 0.00%↑ - need to remain patient:
MMFI - Percent of Stocks Above 50-Day Average
Approaching areas of previous resistance here as we may be getting slightly overheated - nothing to trade off of, just something to keep in mind when initiating new positions
Fear & Greed Index
Leading Stocks Analysis
UBER 0.00%↑ Remains very strong up here with an impressive daily closing range last session to finish the week off strong. Like how it is tightening up while letting the 10EMA catch up to price:
BRZE 0.00%↑ Inside day supported by the 10EMA - has a VCP look to it and could set up very well here with some additional tightenss below 45:
ONON 0.00%↑ Recovered well from the most recent gap-down and now made its way back up to the top of this base. Good to see buyers show up at the 10EMA last session:
SHOP 0.00%↑ Pulls back in to the 20EMA in a controlled manner would like to see continued respect for this level as it is now consolidating nicely below this DTL:
IOT 0.00%↑ Still a frustrating name to trade here and have no doubt it continues to chop up traders - like how it is attempting to form higher lows along the way and will be watching for that to continue here:
CELH 0.00%↑ Proved this is a difficult name to buy on strength with continous difficulty around the 150 spot - may be more suited with alternative entries such as through the highs of this short tight consolidation:
CFLT 0.00%↑ Retesting the recent breakout here while pulling back in to the 10EMA - would like to see this level hold and then turn up from here:
RIVN 0.00%↑ Clearly one of the strongest names in the market here - tried to get going by gapping-up last session but eventually reversed to close poorly. Watching for tightness while getting supported around the 10EMA:
I am linking the leaders watchlist in tradingview for your convenience, here
Individual Sector Analysis
XES 0.00%↑ Continues outperforming as it now approaches the top of this large base and continues bull-flagging along the way:
XLY 0.00%↑ Pulling back to the 20EMA here and is an area I’d like to see hold - has acted as supported along this most recent run upwards:
XLB 0.00%↑ Really liking the recent tightness as we approach the top of this large base here:
Scans
52 Week highs
9 Million breakout
+10% Breakout
Pocket Pivot
Upcoming Earnings
Personal Portfolio Update
Got pushed back to 100% cash before the weekend as some weakness spread out into different areas of the market.
Focus here is on remaining patient and not forcing trades just because the overall action in the market has improved recently. Remain disciplined and wait for your pitch - patience is key to allow orderly setups to form once again, knowing when to trade is one of the most important aspects of your system.
Focus List
Reminder to NOT force anything and rather wait for your edge to show up clearly!
Pivots
High-Tight Flags
High Volume Close