Weekly Review & Focus List For Week of 27th March
There Is Potential For A Big Move In Either Direction!
Hi all!
In this version of the weekly newsletter I will cover:
General Market Overview
The action displayed by leading stocks with TML potential
Individual Sector Analysis - Which groups are breaking down vs showing relative strength
3 Helpful Scans to get potential leaders on our radar
Links to TradingView watchlists
Focus List For This Week
Stocks currently on my watch list
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
Last Session:
Week:
We continue to navigate a very mixed market - after going through over a 1000 charts this weekend, the way I see it right now is that we could be set up for a strong move in either direction:
The bad:
Indices continue to give mixed feedback changing from session to session
Seeing quite a few stocks failing their breakouts
The good:
Leading stocks continue to act well
Came across quite a few sound set-ups
The most encouraging part of it all is how over the last few months we have had every possible piece of negative economic metric come out along with all the discouraging and negative headlines from the recent banking crisis, and despite this giving the market every reason to break wide open and completely crash… the NASDAQ is +13% year-to-date. So when stocks stop going down on bad news, but rather those with leadership qualities continue showing relative strength and dissociate their performance from that of the indices - that is very encouraging.
Thus, considering the mixed signals in line with these setups potentially working and marking the begging of a new trade-able rally / uptrend - I will continue to focus my overall process and trading system as always. Focus right now is on getting my mindset right for the upcoming week - there is absolutely no space for FOMO and I will most definitely let the setups pull me back in incrementally if they start working, after going back to cash towards the end of this week.
SPY 0.00%↑ Re-claims the 10 and 20EMAs by closing strong on the session. Now has 2 important areas right above:
50-Day moving average
Descending Trend Line
Would also like to see it hold the lower trend line on any potential weakness:
Facts are that we continue to make higher lows and higher highs since October:
QQQ 0.00%↑ Continues to shrug off weakness as buyers came in nicely to close the session off strong as it flags out at the top of this short-base with little give-back. Has an important area in the 312 region coinciding with this DTL and horizontal resistance:
IWM 0.00%↑ Has been the weakest index as of late but this may be setting up as a bear trap with this recent undercut and rally below the key 171 area. Would certainly like to see it hold last session's lows:
Failed the recent potential DTL setup on the weekly but may be setting an additional spot on the daily now:
Levels of fear are still elevated:
MMFD - Percent of Stocks Above 5-Day Average - Recent pickup shows a breadth thrust upwards into the end of this week:
MMFI - Percent of Stocks Above 50-Day Average
MMTH- Percent of Stocks Above 200-Day Average
$NASI - May be getting ready to trend back upwards this week:
Large-cap tech continue to outperform by showing persistent relative strength:
Leading Stocks Analysis
Session:
I am linking the leaders watchlist in tradingview for your convenience, here
TSLA 0.00%↑ Holds the 10 and 20EMAs very nicely as it consolidates well below this descending trend line while holding nicely above the previous resistance at 186:
ELF 0.00%↑ This breakout on volume going out at the highs of the session is SCREAMING relative strength and leadership qualities:
ONON 0.00%↑ Excellent strength to follow up the +26% gap-up on earnings with an additional 16% run from that close - has had an impressive follow through of volume clearly showing there is institutional interest in this name:
AI 0.00%↑ Mentioned the importance of the key 22.50 area several times this week and was very encouraging to see this run +19% after breaking that level:
TMDX 0.00%↑ Not a fan of the recent 2 day momentum burst downwards with selling on volume but is consolidating well below this DTL now and watching how it deals with that:
PERI 0.00%↑ Continued strength since respecting the 20EMA nicely over a couple of sessions and then pushing out above this descending trend line:
MELI 0.00%↑ Buyers show up well at the 50-Day moving average to close last session with an encouraging DCR - now sitting at a key area coinciding with short-term moving averages and below this DTL:
Week:
ONON 0.00%↑ Pushes through some key areas on the weekly within this larger IPO U-turn pattern to close strong on the week:
DUOL 0.00%↑ Similar look to above as it pushes out of its primary mature base and close strong on the week:
IOT 0.00%↑ A nice move out of this well-structured double bottom base fuelled by earnings, now flagging nicely:
ANET 0.00%↑ This is one to keep your eyes on for potential low-risk entries as it has shown clear strength currently sitting +16% since breaking out of its base:
Individual Sector Analysis
Session:
I am linking the sectors watchlist in tradingview for your convenience, here
Technology, Semiconductors and Communications continue to show potential leadership characteristics and relative strength with little give back - it is encouraging to see these more growth-like sectors acting strong as these are where most of the stocks I focus on are found vs if slower-moving and less-growth like sectors were to lead - such as utilities:
XSW 0.00%↑ Watching action vs this lower trend line - would like to see it hold as a break may indicate further weakness to come:
Week:
XME 0.00%↑ Holds a key level after continued weakness since its recent failed breakout
XBI 0.00%↑ Holding below a key level on the weekly
XLC 0.00%↑ Pushes above this mini-consolidation on the weekly
Scans
52 Week highs
9 Million breakout
+10% Breakout
Upcoming Earnings For This Week
Personal Portfolio Changes
Opted for defense first this week and decided to close this one near what has been my average gain lately - there was nothing wrong with how this was acting but the overall mixed action in the market had me with my guard up and being more defensive than usual - I often think of the saying no one ever went broke taking a profit. I continue to take wins when they have them and not overstay my welcome.
Focus List
Reminder to NOT force anything in this kind of environment and rather wait for your edge to show up clearly!
ASUR 0.00%↑ Trades a bit thinner than some of the other names I usually focus on both the relative strength here cannot be ignored - has some positive volume characteristics and is consolidating nice and tight below its descending trend line:
FSLR 0.00%↑ Squatted this setup on Thursday but went on to recover with a strong response to the 10EMA on Friday - now watching action vs this descending trend line:
AXON 0.00%↑ Nice and tight inside day - has been holding strong lately while flagging at the highs and respecting moving averages well:
ARDX 0.00%↑ Like how this has been tightening up nicely after gapping up +32% and responding well to key moving averages while holding the gap-up day lows on its pullback:
RETA 0.00%↑ Does not seem to be completely ready just yet but like how this overall pattern is coming together and will be amain priority heading into the new week after gapping up +198%:
Charts To Note
Descending Trend Line
High-Tight Flag
Base & Break
HVC
Thanks for reading! Feel free to like and comment - it really helps me out, have a great week all :)