WEEKEND REPORT - Explosive Market Rally: SG, NVDA, FCX burst into the portfolio as opportunities suddenly unfold
Markets stage a strong move - but can it continue? The setups say perhaps yes, it can, but strong resistance lies above. Stay nimble.
The markets stage a powerful rally to end the week as they look to test moving average resistance above. Trouble is far from over, and a big test remains this week.
Multiple leading names of the correction showed their hand, and our disciplined consistent work allowed us to be ready to pounce, making some new buys on Friday.
We saw great strength and immediate traction in our new buys.
The market has a lot of work to do, but we are seeing strong emerging themes surface and powerful action in many leading stocks.
In today’s newsletter, I will go over new leading sectors showing strength, a surprising amount of fresh new setups, an analysis of our market timing indicators and our portfolio additions
Let’s dive in!
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Today’s newsletter
Index review
Sector review
Market timing indicator
Watchlist/trade ideas
Portfolio review
1. Indexes update
All 3 indexes showed nice bounces this week, but a ton of work remains to be done. We are far from out of the woods.
QQQ - We remain in an inside week, awaiting more direction. A strong hold from this index for now, but the road to safety is far from over, with moving averages right above.
IWM - Same story here - an inside week awaiting confirmation of the next move, whichever way that will be.
SPY - This index held inside and that is better than breaking lower. Patience. Haven’t missed anything yet.
2. Sector Review
Great to see technology bounce back as the leading sector this week.
Mega caps were leading the way once again
Here are some of the leading sectors/industry groups in this market this week
All charts courtesy of Finviz
Bitcoin
Bitcoin broke back below its 50day moving average, albeit with low volume. I was stopped out of my position during the week. For the moment, I do not see a clean setup at all but I am watching this trendline.
Gold
We took profits in our gold position this week.
It currently looks set up to bounce from its 21ema area, setting up a new buy point. Watching it very closely here.
3. Trade ideas-Watchlist-System Signal
During market pullbacks and corrections, it is our job to screen and hunt relative strength names holding up better than the general market - these are most often your next leaders.
We have been doing exactly this, and it enabled us to be ready to strike this week.
After selling off hard, the market has bounced. Now it faces a massive test - key moving averages above.
Weekend screens showed a number of setups and constructive charts. Let’s dive in to them and our market timing indicators also.
System Signal: RED
We remain on a RED signal as we await conditions to improve.
We are waiting for the Quallmaggie indicator to flip to risk-on. The 10ema is starting to curl up, which is a constructive start.
TRADE IDEAS - Note, all entries are marked on the chart (green line) and stop losses (red line), unless written otherwise. Please feel free to use discretion and use whatever stop-risk level you are comfortable with.
NRG
Setup: Flat pivot
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