Alex's daily Market update & Focuslist - 12/04
We continue to see a healthy rotation, as Mega/Large-caps are weighting on NQ/ES indices.
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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
Prime Model spreadsheet (PT_database)
PrimeTrading Market Model #PTMM
PTMM remains on a YELLOW market signal (🟨)
Key Takeaways:
GDB closed at +126, showing strong breadth and pocket of strength while Mega/Large-caps are consolidating.
Weak U/D volume due to mega/large
Daily, 5 & 10-day ratio in EXTREME territory…
LT_momo just about to go positive
We continue to see a healthy rotation out of mega/large-caps into another market area. PTMM shows that this market is supported and has no overall distribution.
ST & MT_momo are now showing extreme readings, typically seen at ST exhaustion move before some consolidation/pullback. I will not try to anticipate anything, especially with this move happening as a continuation breakout and not while the price is extended. But, it is crucial to keep in mind as we manage our exposure and open risk, also knowing how stretched MMTW/MMFI are. This market can snap quickly.
System Action/Rules:
New LONG exposure allowed
1/2 positions only (10%)
Trimming 1/3 at 2R & 3R
Keeping 1/3 as a runner position
PF exposure max = 50%
New open risk > - 0.50%
Alex's gameplan:
We failed to follow through today, especially in larger-cap. We might be in for a longer digestion, especially with MC weighting on NQ/ES.
I didn’t have great traction with new buys today, so I’ll be taking it slower to open further exposure tomorrow, if at all. One position at a time and waiting to hit the 2R target (de-risking position) before trying another trade.
I don’t want to keep my Open Heat in check, so I’ll be tactical in raising SL as we make a new higher high.
That’s how a lockout has to be played…controlling TOR very carefully, one position at a time.
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