- Economic Events
- Index Volume
- Portfolio Updates
The major indexes all made significant progress higher last week. On Thursday and Friday the market gapped up and exploded higher on heavy volume, pushing through a serious amount of their immediate overhead resistance.
Furthermore, Friday was day +2 above the BP. Continue to watch for volatility to dampen as we remain above the bolded pivot and leadership continues to broaden.
As has been the case for the last several weeks now, The DOW is still the strongest index of the four, followed by the Russell 2000. The S&P 500 still lags the Russell and the NASDAQ is still in the weakest position of the bunch.
The real key here is that the improvement in the health and breadth of the market's leadership over the last few days has been palpable. It never ceases to amaze us just how quickly things can shape-up! However, by the number of names at the top of the report this weekend, you would think just the opposite.
Don't be fooled though. The number of leading names that are actually actionable is not always positively correlated with the increase in their overall breadth, as is the case currently.
So, continue to keep a close eye on how rotation is taking shape and be sure to maintain an updated watch list of the strongest stocks, in the strongest groups. Then, set alerts on your most actionable names and be ready to buy these potential leaders as entry areas present themselves.
It's very important to remember that we are still very early in the process here. So, be patient, stick strictly to your discipline/rules and make the market force you in. Don't worry about what anyone else is doing and never forget, the only thing that matters is that your risk is managed.
Note: We are currently in the middle of earnings season, so be sure to check and double check EPS release dates prior to buying a stock. These dates change, and sometimes at the last minute.
The NASDAQ had a rough beginning to last week, but its action on Thursday and Friday more than made up for it. Last Thursday's rise of 7.35% on a huge pick-up in volume did a lot to relieve the pressure on the tech-heavy index. It then continued to trade higher throughout the session on Friday to end the day back above its 65-EMA, as well as its next area of significant resistance.
The S&P 500 traded in a very similar manner to the NASDAQ again last week, although it is still stronger and continues to trade higher in its overall pattern than the tech-heavy index.
As has been the pattern for the last few weeks now, the Russell 2000 shaped up in a very similar manner to the S&P 500 again last week. However, the small-cap index exhibited more strength and closed in even better shape than the S&P 500. The Russell reclaimed its key 200-DMA on Friday and is now trading only slightly below it long-term downtrend line.
Unsurprisingly, the DOW shaped up in a similar manner to the other major indexes again last week and remains the clear leader of the four. The industrial index reclaimed its key 200-DMA last Monday and ultimately finished the week above its long-term downtrend line. By this measure, the DOW is the only major index in an actual technical uptrend.
Sectors & Industry Groups
Potential Leadership Groups
- MEDICAL-BIOTECH/SYSTEMS & EQUIP, ENERGY-OIL/GAS/COAL, ALTERNATIVE ENERGY-SOLAR, TECHNOLOGY – SEMIS/SOFTWARE, BUILDING & RELATED, STEEL, & FINANCIAL
Watch NTNX for a big volume move through $28.73, with a sell stop at its 10-DMA.
Watch PI for a big volume move through $115.82, with a sell stop at its 10-DMA.
Watch FCFS for a big volume move through $97.04, with a sell stop at its 10-DMA.
Watch DXCM for a big volume move through $123.36, with a sell stop at its 10-DMA.
Watch IMCR for a big volume move through $61.32, with a sell stop at $56.80 &/or on a constructive pullback to $59.94, with a sell stop at $56.80.
Watch RYTM for a big volume move through $27.29, with a sell stop at $25.70.
Swing Trade Ideas
Swing Trade Ideas contains a mixture of stocks. When the market is in a healthy uptrend, there will tend to be an overflow of stocks that were left out of the Focus List because they looked less actionable, despite being of similar fundamental quality, or were of lower fundamental quality altogether than the stocks included in the Focus List section above.
Because this section also includes stocks that are at times, devoid of fundamentals and typically only included for technical reasons, extreme care should be taken when trading these names. These stocks are there for experienced traders with a shorter time frame, that has a thorough understanding of position sizing risk and management.
CP – Constructive Pullback
PP – Pivot Point
SS – Sell Stop
TS – Trailing Stop
CELH – PP $96.53, SS 50-DMA.
BIIB – CP $283.44, TS 10-DMA.
DAWN – PP $21.58, SS 50-DMA.
INBX – PP $34.71, SS$32.50.
INMD – CP $36.37, SS $34.39.
MEDP – PP $225.00, SS $220.00
NUVL – PP $33.60, SS 10-DMA.
PCVX – PP $46.03, SS 10-DMA.
PRCT – PP $46.73, SS $44.70.
SAVA – PP $38.80, SS $36.76
TMCI – PP $25.00, SS $24.00.
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