TraderLion Report No. 14 | TraderLion

Trend

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3
Market Cycle

Sentiment

• Economic Events
• Index Volume
• Portfolio Updates
• Watchlists
• 
  Video
  

Market Insight

The major indexes all declined last week. On a bright note, volume declined from the week before.

The NASDAQ and S&P 500 both added a distribution day last week. This brings the count to two days on both major indexes, which is far from concerning.

In terms of the Market Cycle, Friday was day -5 below the bolded pivot. Remember, a reversal often occurs on days 4 and 5 of a cycle, whether you are above or below the BP. We could still see a day 6 reclaim, which sometimes happens.

Most importantly, the current state of the market’s leadership (the Long Watch list at the bottom of the TL Weekly Report), remains healthy and broad.

We say this based on the fact that our Long Watch List exhibited some serious alpha last week. Despite a very weak general market, our Long Watch List stayed notably strong. This is telling us something.

Nevertheless, it's important to remember that just because leadership continues to improve, that doesn't mean the market still isn't volatile and difficult to make progress in. That is also telling us something.

That bottom line is, as long as we remain below the BP, no new positions should be initiated. As far as any long positions that you may already have established in your portfolio, each should be handled on a case by case basis, depending on the cost of your position, how much progress you’ve made, etc.

Otherwise, continue to watch the leaders closely, keep close track of the market’s rotation in and out of these stocks, and maintain an updated watch list. There is no better way to keep your finger on the pulse and health and breadth of the market until we reclaim the BP.

The Indexes

NASDAQ

Tickers: None

The NASDAQ sold off sharply last Monday and Tuesday and then more or less moved sideways above its 50-DMA for the rest of the week, which is where major support for the tech-heavy index lies from here.

S&P 500

Tickers: None

In a similar manner to the NASDAQ, the S&P 500 fell sharply last Monday and Tuesday. It then more or less moved sideways above the confluence of its 65-EMA and a prior swing high, much closer to its 200-DMA than the the tech-heavy index.

Russell 2000

The Russell 2000 was the weakest of all the major indexes last week. It fell sharply last Monday and Tuesday, moved sideways below its 65-EMA on Wednesday and Thursday, then continued to fall again on Friday, undercutting Tuesday's low and closing ever so slightly below its key 50-DMA.

DOW

The DOW is still clearly the strongest index of the four, and not surprisingly, it followed a similar pattern to the other major indexes last week. It fell sharply last Monday and Tuesday, found support at its 23-EMA where it bounced for a couple days. However, the industrial index ultimately rolled back over on Friday and finished the week back below its 23-EMA.

Sectors & Industry Groups

• 
  Current Leadership Groups

MEDICAL-BIOTECH/PHARMA SYSTEMS EQUIP
ALTERNATIVE ENERGY – SOLAR
TECHNOLOGY – SEMIS/SOFTWARE/NETWORKING
BUILDING & BUILDING RELATED
RETAIL – DISCOUNT/SPECIALTY

Focus List

CRDO

Watch CRDO for a big volume move through $15.41, with a sell stop at $14.65.

GFS

Watch GFS for a big volume move through $65.96, with a sell stop at its 23-EMA &/or on a big volume move through $67.97, with a sell stop at $65.96.

LSCC

Watch LSCC for a big volume move through $72.15, with a sell stop at $70.00 &/or on a big volume move through $73.53, with a sell stop at $71.24.

MTSI

Watch MTSI for a big volume move through $69.89, with a sell stop at its 23-EMA.

ARRY

Watch ARRY for a big volume move through $23.03, with a sell stop at $22.00.

ATAT

Watch ATAT for a big volume move through $17.05, with a sell stop at $16.00.

EPS not avilable on DV yet for this IPO.

CELH

Watch CELH for a big volume move through $118.19, with a sell stop at $112.25 &/or on a constructive pullback to $112.25, with a sell stop at its 23-EMA.

DE

Watch DE for a big volume move through $448.40, with a sell stop at its 10-DMA.

DXCM

Watch DXCM for a big volume move through $119.98, with a sell stop at its 23-EMA.

LEGN

Watch LEGN for a big volume move through $53.83, with a sell stop at its 23-EMA.

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

ACLS – CP $81.06, SS 21-DMA.
AEIS – PP $94.83, SS $90.00.
ALGM – CP $31.97, SS 10-DMA.
AMKR – PP $28.36, SS 10-DMA.
CALX – PP $73.46, $70.00. LF $70.63, SS $70.00.
DGII – CP 50-DMA, SS 23-EMA.
MODN – PP $40.10, SS 10-DMA.
NTNX – CP $29.43, SS 23-EMA.
RMBS – PP $38.18, SS 21-DMA.
STM – PP $39.48, SS 21-DMA.
AAON – PP $81.20, SS 21-DMA.
ATKR – PP $123.53, SS $120.
CECO – PP $12.54, SS 10-DMA.
CHWY – PP $45.73, SS 10-DMA.
CROX – CP $101.99, SS 21-DMA.
DHI -PP $87.14, SS 23-EMA. LF $85.00, SS 10-DMA.
FCFS – PP $96.61, SS 23-EMA.
HRB – PP $44.02, SS $42.00.
LEN – PP $90.00, SS 23-EMA.
ROST – PP $119.48, SS 10-DMA.
TT – PP $181.30, SS 23-EMA.
URI – PP $367.94, SS 21-DMA.
ALNY – CP $220.33, SS 23-EMA. LF $220.33, SS 23-EMA.
ASND – CP 50-DMA, SS 65-EMA.
BGNE – PP $210.51, SS 21-DMA.
CPRX – pp$17.55, SS 10-DMA.
FDMT – PP $25.00, SS$23.80.
HRMY – PP $60.66, SS 23-EMA. LF $48.47, TS 23-EMA.
INCY – CP $81.00, SS 23-EMA.
ISRG – CP $267.67, SS 23-EMA. LF $267.67, SS 23-EMA.
MRNA – PP $188.65, SS $180.00.
REGN – CP 50-DMA, SS 65-EMA.
SRPT – PP $120.23, SS 23-EMA.
TMCI – PP $25.00, SS $10-DMA.

Watchlists

ELF PRTA CHX FSLR PRVB BMRN ISEE INBX AXSM NUVL CALX CELH ALNY MEDP PI SMCI PDSB UTHR WING TMDX TITN GILD BBWI MANU ACGL DGII BURL

IOT STEM CEG EE ARHS ATAT ESAB CRDO DOCS OWL TPG CRBG HLN EMBC PSNY SGML GTLB YOU MBLY ARRY GFS ASO

AMLX TGTX MGNI RYAM BCAB CPRX RYTM AEHR IMVT TH FDMT NINE MAXN APPS ATNM GRWG MNSO

A AAON ABBV ACET ACLS ACLX AEHR AEIS AJRD AKRO ALGM ALNY AMGN AMKR AMLX ANET ARCH ARGX ARRY ASAI ASML ASND ASO ATAT ATKR ATNM AVDL AXSM AZTA BA BBW BCYC BGNE BHVN BIIB BMRN BNTX CAH CALX CECO CEG CEIX CELH CF CHWY CPRX CRDO CROX CRS CTIC CVLG DAWN DE DECK DGII DHI DICE DKS DNLI DXCM ELF ENVA ETSY EXTR FCFS FDMT FERG FIX FLR FN FSLR FUTU GFF GFI GFS GILD GMAB GS GTLB HAE HALO HCP HEES HRB HRMY HTHT HZNP IBKR IDYA IMCR IMVT INCY INMD IOT ISEE ISRG IT KDNY KLAC KNSA KRYS LEGN LEN LSCC MACK MAXN MBLY MCD MCHP MEDP MELI MNSO MNST MODN MRNA MSI MTSI NBIX NTNX NUVL OLK ON PCVX PDD PDFS PEN PERI PFE PFGC PHM PI PODD PRCT PRM PRTA PRVB PSN QURE RCUS REGN RETA RJF RMBS RNR ROST RPRX RVMD RYTM SANM SBUX SCHW SFM SGML SHOP SILK SLAB SLVM SMCI SNPS SPWR SPXC SRPT STLD STM SUPN TGLS TH TJX TMCI TMDX TPG TSCO TT ULTA URI UTHR VIPS VRDN VRNA VRTX VTYX WING WSC WWE XENE XPOF YUMC ZYXI

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