Weekly review & focus list for week of 1st May
Mega-Cap Tech Leads This Market - Market Overview, Industry & Leading Stock Analysis + 4 Helpful Scans
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
Mega-cap tech continues to lead this market with some strong responses to earnings in META 0.00%↑ and MSFT 0.00%↑
AAPL 0.00%↑ remains in its recent uptrend since breaking above its descending trend line with buyers consistently coming in well at the 20EMA
GOOG 0.00%↑ Consolidating well below a key area as it attempts to tighten up here
The indexes really show the importance of identifying key levels and assessing how buyers act around those areas. All things considered, despite sellers originally being in control this week - the indexes were able to react well to some key areas with buyers coming in to end the week on a strong note.
Keeping it simple, despite the limited breadth still being seen in this market - the indexes are still acting very well:
SPY 0.00%↑ Holds 405 on weakness and pushes to close above the most recent highs
QQQ 0.00%↑ Holds ~309.5 area of prior resistance as buyers came in to quickly push back up to new highs
IWM 0.00%↑ Holds the lower end of its consolidation once more around ~171, now attempting to reclaim EMAs
ARKK 0.00%↑ Watching if this holds support around 35 on weakness
Weekly:
MMFI - Percent of Stocks Above 50-Day Average
Steadily increasing:
Fear & Greed Index
Leading Stocks Analysis
Session
AMD 0.00%↑ Have been mentioning the importance of this ~88.50 area here, trying to be objective and not get biased - below 88.50 is bad, above is good. Encouraging to see a strong reclaim of a key area:
ANET 0.00%↑ Acting well with a good response to the 50-day moving average as buyers came in strong around that area to then reclaim the EMAs on Friday:
NVDA 0.00%↑ Another strong liquid name - has been acting well recently with a quick shakeout below the 20EMA as it attempts to tighten up some here:
ONON 0.00%↑ I continue watching this name closely and love the shakeout it put in on Thursday to undercut and close back above a key area. Then held it on weakness on Friday to close with a tight-ranging inside day:
ELF 0.00%↑ Strength is revealed not only in the power of the up move but also in the way the later weakness is dealt with - good to see this pull back in a controlled way to the 10EMA after a strong prior run:
However, there is also no shortage of stocks breaking down and losing key areas:
Week
SMCI 0.00%↑ Weekly removes some of the chop seen on the daily and shows a picture of a potential shakeout below previous resistance:
MELI 0.00%↑ Solid close on the week as buyers stepped in right at the 10WMA to close well off the lows - now flagging out nicely and attempting to tighten up below its DTL:
ONON 0.00%↑ Closes above key area
IOT 0.00%↑ Now proving to be a failed breakout quickly down -21% off the recent highs and showing sellers are in control at this time:
Individual Sector Analysis
Session
Average: +0.94%
XBI 0.00%↑ With a strong close to reclaim all key moving averages and an important area of prior resistance right at the 80 spot:
SMH 0.00%↑ Good to see semiconductors quickly push above the initial pivot around 243.8 but I am still focused on the more significant level around 248.50 which would indicate this move lower was more of a shakeout:
XLE 0.00%↑ Closes well on the session after buyers came in well on Thursday at a previous level of interest around 82.80 and then followed up on that with a KMA-reclaim on Friday:
XHB 0.00%↑ Homebuilders are still very strong and acting well - now firmly above the key 70 spot we have been watching as it breaks out well last session:
XLC 0.00%↑ Great display of strength in communications as we see follow-through after Thursday's big gap-and-go move:
Week
SMH 0.00%↑ Weekly view really shows why that 248.50 area mentioned previously is significant - was the pivot of this recent inverted head and shoulders base which it broke out of and is now retesting:
XLK 0.00%↑ Tech flagging out very well here after buyers stepped in right at the 10WMA during the week. Now right below a key spot of resistance:
XRT 0.00%↑ Watching this weekly trend line to see if selling picks up on a break below:
Scans
52 Week highs
9 Million breakout
+10% Breakout
Pocket Pivot
Upcoming Earnings
Personal Portfolio Update
Still remaining focused on finding low-risk opportunities while not forcing trades.
I continue working on my edge and implementing different tactics into my system - one I have been studying and working on as of late is the use of AVWAP after an interview I did with Brian Shannon showed me its true potential.
Only trade I made on Friday was this one in CXAI 0.00%↑ after it showed the ability to reclaim its AVWAP off the recent highs - I find AVWAP a great way to get involved with momentum names at the right time:
Follow me on twitter where I often post more frequent updates:
Then sold portions into strength and trailed the remainder: