Contents
Trend
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29
Market Cycle
Sentiment
- Economic Events
- Index Volume
- Portfolio Updates
- Watchlists
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Video
Market Insight
The major market indexes whipped back and forth in a volatile manner throughout the session Friday, yet they all ended it up higher on the day as volume swelled across the board.
The NASDAQ finished Friday's session up 1.28%, while the S&P 500 closed up 1.36%. The distribution count remains unchanged at 3 days on the NASDAQ and 2 on the S&P 500. The NASDAQ is still the weakest, while the DOW is still the strongest.
Furthermore, Friday was day -3 below the bolded pivot and the action of the market's leadership was bifurcated at best. There was serious selling going on in the biotech group, but there was notable strength as well. In general, most of the names on our long watchlist were either up or down a large amount by Friday's closing bell.
The bottom line is that all four major indexes continue to trade below their 200-DMAs, as well as their long-term downtrend lines and remain under heavy pressure. Not to mention, the leadership picture doesn't exactly look encouraging at the moment. Nevertheless, these things can change in just a matter of days.
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, assuming we have the evidence to do so.
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.
We will sat it again, there are no prizes for being the first one back in the market! So, like we said in yesterday's Daily Update, the market will become cooperative again when it does, and it’s our job to interpret and react within the confines of our discipline, not to predict moves before they happen. Hence, cash IS a position, and quite often a rather phenomenal one.
Note: We are currently in the thick 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 Indexes
NASDAQ
Tickers: None
The NASDAQ gapped up at the open, then proceeded to whip back and forth for the remainder of the session in a volatile manner, but the tech-heavy index still managed to close near its high for the day as volume picked up to well above average.
S&P 500
Tickers: None
The S&P 500 traded in a very similar manner to the NASDAQ Friday, with the exception of holding above Thursday's low, so it didn't finish with a bullish engulfing pattern like the tech-heavy index did. Also, the S&P 500 closed much closer to its key 50-DMA than the NASDAQ did last Friday, which is still the weakest major index of the four.
Russell 2000
The Russell 2000 shaped up in a very similar manner to the S&P 500 on Friday, although the small-cap index finished the session in better shape. The S&P 500 closed just shy of its key 50-DMA, while the Russell 2000 managed to reclaim its key 50-DMA and 65-EMA.
DOW
Nor surprisingly, the DOW followed a very similar path to the S&P 500 again on Friday, as it often does. However, the DOW finished last week in the strongest position of all four major indexes, just as it has for the last several weeks now.
Sectors & Industry Groups
1 Week
4 Week
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Potential Leadership Groups
- MEDICAL-BIOTECH/SYSTEMS & EQUIP, ENERGY-OIL/GAS/COAL, & FINANCIAL
Focus List
AEHR
Watch AEHR for a constructive pullback to $19.43, with a sell stop at its 23-EMA &/or a constructive pullback to $17.70, with a sell stop at $16.87.
FCFS
Watch FCFS for a big volume move through $97.04, with a sell stop at its 10-DMA.
GS
Watch GS for a big volume move through $357.44, with a sell stop at $350.00.
SLB
Watch SLB for a big volume move through $53.89, with a sell stop at its 10-DMA.
BIIB
Watch BIIB for a big volume move through $283.44, with a sell stop at $274.01.
CPRX
Watch CPRX for a big volume move through $14.71, with a sell stop at its 10-DMA.
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
MSI – CP $251.87, SS 10-DMA,
CBOE – CP $126.87, SS 10-DMA. LF $125.51, SS 10-DMA.
CROX – CP – $83.64, SS $80.00.
CTVA – CP $64.30, SS 23-EMA. LF $63.24, SS 23-EMA.
HOOD – CP $11.63, SS $11.00.
IBKR – PP $82.83, SS 10-DMA.
MCD – CP $271.15, SS 10-DMA.
NDAQ – PP $62.97, SS 50-DMA.
NFE – CP $57.25, SS 10-DMA.
RJF – PP $120.56, SS, $116.47.
STLD – PP $97.02, SS 10-DMA.
ACLX – CP $20.00, SS 23-EMA.
KRYS – CP $72.56, SS 23-EMA. LF $72.56, SS 23-EMA.
REGN – PP $754.67, SS 23-EMA.
VRTX – CP $304.26, SS 23-EMA. LF $304.26, SS 23-EMA.
Watchlists
LNTH SWAV FSLR TMDX AXSM CHWY DGII ABOS INBX PRTA PRVB ALNY CELH DICE PI WING CHX MEDP CALX GILD ACGL TMUS UTHR SMCI NUVL ELF NUVL
SGML STEM RIVN SG ASAN ASO CPNG CEG UDMY EMBC ABNB ARHS ARRY
MAXN COMM RVNC ALDX PI BCAB MRSN AEHR RYTM TH GOSS DBTX COGT AMLX CPRX FNGR ATNM
A ABCL ACLX ADM AEHR AKRO AMGN AMLX AMPX ARCT ARGX ATNM AXSM AZPN BHVN BIIB BOWL CAH CALX CBOE CCRN CDRE CEG CELH CF CHRD CLFD CPRX CRBU CROX CTKB CTVA CVLG DAWN DECK DEN DGII DICE DVN DXCM ELF EOG EXTR FCFS FGEN FIX FLR FN FREY FSLR GLNG GLP GS HAE HAL HALO HLIT HOOD HRMY HZNP IBKR INBX INMD IRDM ISEE IT KDNY KNSL KRTX KRYS LEGN MCD MEDP MPC MSI MUR NBIX NDAQ NFE NRDS NTNX NUVL OXY PAYO PBF PCVX PI PLRX PODD PRCT PRTA REGN RJF RMBS RNR RYTM SANM SAVA SG SGML SLB SMCI SPXC STKL STLD SWAV TBT TDW THS TJX TMCI TMDX UDMY URI UTHR VERX VRNA VRTX VTYX WING WWE XENE XMTR XOM ZYXI
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