Why Today's Action May Mark The Beginning of A Year-End Rally
And how to position yourself best to take advantage of it
While the importance of a structured daily routine cannot be overstated - I think there are certain days which may require a more in-depth study of the action displayed by the general market and specific stocks - Today may be one of those days.
After todays extreme reversal following Fed Chair Jerome Powell’s speech, where the $QQQ and $SPY showed intraday reversals to go from negative on the session to close +4.56% and +3.15% respectfully; I thought that today was one of those days that warranted a detailed and in-depth analysis of its action. An important point to note is that the SPY 0.00%↑ closed above the 200MA for the first time in over 7 months, while this is in no means an “all clear”, it is encouraging and a start.
Typically, most of my stock homework is done over the weekend - where I run every scan I have and manually go through thousands of charts to make sure I don’t miss anything worth noting.
To ensure that I do not miss any important details or hints from individual action today, I went through my entire weekend process in a single night, running every scan I have and analysing over a 1000 charts!
The easy money is made when there are so many stocks breaking out that you don’t even know which to choose - for the first time this year we may approaching such a situation. A very encouraging sign related to this is that there was a broad rally with great breadth - meaning that it wasn’t just a specific industry, or a select few stocks which moved the market today, but rather the extreme majority of stocks on the market which moved in tandem - showing broad-based demand.
Yesterday, I highlighted the importance of closing above the 280 level in the QQQ - which was achieved following a shakeout of recent lows and thus set us up for further upside into today’s session:
In this article, I will be going over stocks that are:
On my focus list - Such as this high-tight flag in $FDMT
Currently breaking out - Thus, showing encouraging action for a sustained uptrend - Such as $BAND
In industries and interesting market themes that look poised for further upside
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