Alex's daily Market update & Focuslist - 02/12
The broad market making a new ATH high, while the technology sector looks tired.
Good evening!
The market opened the week very strong, but we saw some exhaustion type of action in the technology sector and in the large & mega-caps space.
But we also saw some very strong & constructive action in the sectors/themes we identified last night. BLOK, TAN, IPO, CARZ, XBI, JETS, XRT, XHE, IBUY, and PXE are setting up nicely for potentially taking the lead as a more than welcomed & healthy digestion seems needed in the tech space.
Don’t get me wrong, the trend overall is still firmly up, and the broad market made a new ATH price today, so it looks more like a potential healthy rotation as recently lagging sectors might take the lead. Breadth & Momentum ST indicators still show some room on the upside, so we might see the broad market remaining strong while we get some digestion in extended sectors.
The next few days should confirm or not that theory.
We also have the CPI report tomorrow morning at 8:30, which should be a good catalyst for the next few day’s move.
Good read & HAGN!
Alex ✌️
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
A strong breadth day, coming after 4 green days in a row, so I am a bit cautious of that being a mini-climatic day before CPI tomorrow. We'll see & let our PF guide us!
PTMM price made A NEW ATH today. Now that's a pretty important breakout...can we FOLLOW-THROUGH on CPI tomorrow is the big question.
MCSI is right at 10dma and tomorrow is make or break.
5-day ratio is getting off the buying zone and now at 4, which we still have upside potential, but getting late for new buys, imo.
Today qualifies as a breadth thrust day.
The trend is in place, with more & more sectors joining the party, and the broad market making an ATH today. Hard to be bearish, but at the same time we have to be ready for a stress-test with the recent action from the 21dma last week.
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