Alex's daily Market update & Focuslist - 12/17
The market started to digest the recent strong run-up. Now can we see another rotation into the Mega-caps stocks?
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Tonight’s daily report content
PrimeTrading Market Model #PTMM
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
PTMM switched on a GREEN market signal (🟩)
Key Takeaways:
GDB closed at -216 as the market started to digest the recent strong run-up.
NNH retracted (digestion)
Up daily_momo died (digestion)
Price > 9.54% from 50dma. Very extended.
I’ll look at digestion around the 10 or 21dma, which is 3/6% from the current price.
With a strong push from small-cap/junk in the last week or so, I think the rotation into mega-caps we saw last Friday might have legs as we know the majority of the mega-caps basing for the past weeks, with NVDA & TSLA breaking out late last week.
Seeing these internal rotations is a sign of a solid market.
Those are the only setups I find interesting for now, as the rest of the market certainly needs to cool a bit off.
If that digestion/consolidation occurs, we’ll want to see GDB remain relatively low, below -500 on down days.
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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