Alex's daily Market update & Focuslist - 12/20
Heavy distribution & reversal day - caution
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Tonight’s daily report content
PrimeTrading Market Model #PTMM + Takeaways
General Market Analysis: NASDAQ - S&P 500 - RUSSEL 2K - OTHERS, including my daily levels & my bullish and bearish scenarios
Market Internals
Sectors & Themes Analysis
Daily Focuslist including setups, alert levels & explanation (long & short)
Leaders list + Scans (technicals, fundamentals & potential TMLs)
My Portfolio Update
Economic Calendar
PrimeTrading Market Model #PTMM + Takeaways
PTMM is on a GREEN market signal (🟩)
Key Takeaways:
GDB closed at -725 - Clear distribution day, with extreme negative readings
-88% down day (extreme)
Strong negative daily momo (extreme)
Price > 7.69% from 50dma.
Another strong negative day could turn MCSI down tomorrow. (hook down)
If we get an MCSI hook down tomorrow, that’s a clear step-down signal for me. MCSI is a powerful tool to gauge market direction.
The broad market was extended & overbought after the incredible run we’ve had, so today was the move I was so cautious about. These snapbacks are quick & swift in a frozen trend like the last few days. It's a good thing we were on our toes for that.
Now what?
Considering the extension level, we must respect today’s distribution & reversal day. This recent excess level could take more than only a few days to retract and build the next good opportunity window.
That said, the trend is so strong, as the last few days & weeks showed. With indices, sectors, and leading stocks above up-trending moving averages, I want to keep an open mind on the duration and depth of that pullback.
In short, I have no clue where today’s reversal will lead us. The only thing I’m ready for is to be on a more defensive stance with only de-risked positions left in my PF and ready to observe how the next few days will shape up.
It’s time to be patient and focused and catch the clues the market will throw at us.
System Action/Rules:
LONG exposure allowed
FULL positions (20%)
Trimming 1/3 at 2R & 5R
Keeping 1/3 as a runner position
PF exposure max = 100% or margin
New open risk (NOR) > - 1%
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