Weekly Review & Focus List For Week of 3rd April
The Market Continues Giving Excellent Feedback
Hi all! 👋
In this article 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
4 Helpful Scans to get potential leaders on our radar
Links to TradingView watchlists
Personal Portfolio Update
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
Session
Week
Extremely encouraging action throughout all this week - the market is providing ample feedback and giving clear signals as setups are working with very supportive follow-through in leading stocks, the indexes, as well as in individual sectors.
Good to see 3 of the above indexes - the SPY 0.00%↑, QQQ 0.00%↑ and ARKK 0.00%↑ reclaiming and closing strongly above their respective 50-day moving averages this week while the IWM 0.00%↑ continues to live below.
Breadth metrics continue to be encouraging showing a move away from limited participation amongst stocks to broad-based participation in this latest rally - this is what we want to see more of.
Very important to keep in mind that we have ran quite a bit in a relatively short-time, that alone could be basis for a potential pullback to settle in soon - as always, focus is on avoiding overtrading, FOMO and taking subpar setups by rather focusing on your overall trading process and allowing the market to pull you in via progressive exposure.
MMFD - Percent of Stocks Above 5-Day Average - Really shows that things may be getting short-term extended as we are approaching areas where a potential pullback may occur:
MMFI - Percent of Stocks Above 50-Day Average - Can see a quick and sharp pickup in breadth recently
$NASI Continues its bottoming process
Fear & Greed Index
Quick change in sentiment from the low of extreme fear printed just 2 weeks ago:
SPY 0.00%↑ Now has 3 unfilled gaps with strong closes in the last 3 sessions alone with a nice volume pick up on Friday, an extremely clear sign of overwhelming demand as we are now back above all key moving averages which are trending upwards as well as a key area around 405:
QQQ 0.00%↑ Mentioned the importance of the 311-312 area heading into this week and the QQQ 0.00%↑ blew that right out to close the week above 320. Very positive action to reclaim a key level both on the daily and weekly as price continues trending upwards nicely along with all key-moving averages:
IWM 0.00%↑ Was able to push through the sellers it had been encountering at the EMAs lately to close back above the 20EMA for the first time in almost a month. Still weaker than the rest but responded well with that recent failed breakdown of 171 to lead to an undercut and rally:
ARKK 0.00%↑ Was able to push through its descending trend line to reclaim all key moving averages. Now at a key area on the weekly and would like to see a close above 41 as a start:
Leading Stocks Analysis
Another strong session with all but 2 of the above closing up on the session, most with encouraging gains and strong daily closing ranges on volume. All of the above are higher than where they were 3 months ago and continue to provide positive feedback that action is improving:
AI 0.00%↑ Clear momentum leader to close the session +21.50%, and +32.85% on the week. Has been non-stop since mentioning the setup around the 22.50 area at the lower-end of its base and now most likely needs some time up here in order to set up once more after getting extended:
TSLA 0.00%↑ Always great feedback when a mega-cap like Tesla acts so well and is able to push above its descending trend to close strong on the session +6.24% on volume:
DUOL 0.00%↑ Had traded this one recently off the first descending trend line setup marked below and is good to see it go on to setup and break out once more:
MELI 0.00%↑ Beautiful follow through of this descending trend line breakout to run +10% in just 3 sessions:
ANET 0.00%↑ Very difficult to keep down true market leaders for long and this continues to shower leadership quality with basketball under water action - quickly pops right back up after a short period of weakness:
FSLR 0.00%↑ Main focus here for this week as it prints an inside day with a strong DCR while holding nicely above the KMAs and below this key area around 218:
NVDA 0.00%↑ More follow through off of this descending trend line setup we highlighted recently:
RMBS 0.00%↑ A+ breakout action both in terms of price and volume, excellent follow through with strong closes:
ALGM 0.00%↑ Like the nice and tight inside day with a strong close printed last session to close in the wick of the prior candle, may need some more time up here but could see this pushing out too:
ON 0.00%↑ Attempting to tighten up here in this potential VCP as this is another that ran quickly in a few sessions after the brief shakeout below key moving averages. Watching action vs 83:
Weekly
I am linking the leaders watchlist in tradingview for your convenience, here
DUOL 0.00%↑ Beautiful pattern here as we see this IPO moving out of its primary mature base
MELI 0.00%↑ Another one which pushed out above a key level on the weekly, also held that area on weakness which is encouraging to see:
ATAT 0.00%↑ Still with some wild daily swings but the weekly shows its continuing to come together
ANET 0.00%↑ Continues hovering right at new highs after moving out of its long base:
IOT 0.00%↑ Another young IPO acting well - choppier on the daily but weekly shows a strong picture with positive price and volume characteristics recently as it moved out of its primary IPO-base:
ONON 0.00%↑ With a potential short-stroke setup here as weakness was quickly bought up on the week:
Individual Sector Analysis
Excellent performances here both in terms of percentage change on the session, with only one component tracked above closing down on the session, as well as from a daily closing range side of things as buyers were in clear control on the session:
XLC 0.00%↑ Continues taking out pivots quickly as it now pushed above the 57 area to close above that on increased volume:
XBI 0.00%↑ Continues hovering at a key area with an inside day after continuous weakness. Interesting to note that it failed to follow through on its recent break down which may be showing that sellers are losing control:
PEJ 0.00%↑ and XLI 0.00%↑ reclaim their 50-day moving averages:
XME 0.00%↑ Continues to act well since pushing out of its recent mini-consolidation down near previous support to now reclaim the 10/20 EMAs that are trending upwards with the 50-day moving average up above:
Weekly
I am linking the sectors watchlist in tradingview for your convenience, here
Extremely encouraging that no component from above closed down on the week!
Technology XLK 0.00%↑ and SMH 0.00%↑ continue to be 2 of the strongest areas of the market - strongly linked to the recent outperformance in the QQQ 0.00%↑ and it is very encouraging to see these push above key areas on the weekly chart and even more to close above:
XLE 0.00%↑ Approaching a key level once more and will be watching closely here:
Scans
52 Week highs
9 Million breakout
+10% Breakout
Pocket Pivot
Personal Portfolio Update
Initially things were working quite well but the overall weakness in the CRBP 0.00%↑ position later into the session ended up causing some pressure on the portfolio.
Previous Positions:
I was already aware of the fact that I may have to keep trimming this position due to it getting quite extended quickly - ran +27% from entry in 3 days.
Glad that I was selling portions of it in to strength first at 8.06 and now last session on weakness at 8.64 as it went negative on the session, before eventually getting stopped out on the remainder of my position below Wednesday’s low.
Closed for +12.65%, a 6.0R trade.
New Positions:
Focus List
Given we are running hot with lots of stocks past ideal buy points, it is very important not to let this get to you and end up taking subpar trades due to FOMO. Wait for the setups to come to you and pull you in with progressive exposure.