Alex's daily Market update & Focuslist - 12/14
Precisely the kind of follow-through we needed to confirm the strong breadth thrust of yesterday.
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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 +594, precisely the kind of follow-through we needed to confirm the strong breadth thrust of yesterday.
BREADTH THRUST FOLLOW-THROUGH
Even more extreme reading - this is getting a bit ridiculous.
MCSI/PTHL going parabolic
ST/MT/MT Momentum extremes
Price > 12.65% from 50dma. EXTREME price extension.
Good news: we followed through on yesterday’s FOMC reaction and sustained impressive buying pressure all day.
We are seeing the broad market expand like we haven’t seen since 2020, with even the mega-caps being read today while the rest of the market was doing the heavy lifting for once.
Make no mistakes, this market is freaking extended. It can snap back anytime, but we can count today as day #2 of that strong momentum burst, and some consolidation or even pullback would only be healthy and welcomed to sustain a more significant move.
Switching on that green signal does not mean going pedal to the metal…it means that we are entering a POTENTIAL longer trending period.
I remain aware & cautious about this extended and overbought condition (MMFI/MMTW/MT_momo/MCSI, etc.), but as setups keep showing up, VIX & CS are breaking their last year’s base levels. New highs are made in leading sectors & themes; we have to follow price action & setups by keeping risk tight at the PF level.
One position at a time.
System Action/Rules:
LONG exposure allowed
FULL positions (20%)
Trimming 1/3 at 2R & 3R
Keeping 1/3 as a runner position
PF exposure max = 100% or margin
New open risk (NOR) > - 1%
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