Good evening folks!
I really hope that you had a great trading day! On my side, pretty frustrating…as my broker was down for the first 2 hours of the day, making it impossible to get very good entry on names such as ENPH, CELH & FLNG.
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MARKET REVIEW
Today’s went in the direction of confirming the bullish scenario I was talking about last night as we breakout of our mini channel, finding support at the 10 & 21dma.
We still have to close above the 50dma & recent swing high (4205$) in order to really confirms it and possible making a second leg up.
Upside:
On the upside, the ideal scenario would be a retake of the 50dma & 4205$ pivot.
Downside:
A 2nd rejection of the 50dma on volume and close below 4140$ would not be a good action to close the week. We’ll want to close the week strong tomorrow ideally.
MARKET BREADTH
NET new 1M & 52W high on the NYSE. Still healthy env.
McClellan back above 250… and like that we are back in mild overbought territory. We can still follow through but I would prefer we don’t see readings above 300 like last week.
Stocks > 50dma is taking out recent swing high, making a higher high. This the kind of strength we want to see.
VIX confirming the wedge rejection we saw last night and this was one of the best indication, along individual stocks action that something was brewing. VIX is a very powerful tool to use.
ECONOMIC CALENDAR
SECTORS PERFORMANCE
Look who leading! Solar & Clean Energy that were strong in the last 2 weeks are leading the reversal today. I also notice strength in more “growth” sectors, such as Internet, Software and Semis. They should start hitting the FocusList soon as they go above their 50dma and form interesting patterns.
Crude Oil (CL_F) with a hell of a reversal today! Found support at the 111.37$ recent pivot and closed 116.57$ again. This is looking good for continuation, but we want to see follow through tomorrow to confirm it.
NG_F (Natural Gas) failed for a second time the 8.91$ pivot and making a lower high. I’ll look to see if we keep the UTL & 21dma tomorrow, which is very important to keep the setup alive.
PORTFOLIO UPDATE
Such a great day that could have been an amazing day, but I decided to play the name that I was really looking closely to open or add for a few days now even if we were later in the day and the entries are not ideal R/R.
I based this decision on the fact that we just had a pullback and we might have more upside market wise. I would have NOT DO IT if we were extended on SPX.
New positions:
ENPH - Favorite solar name that I think could be a leader here. Was looking at the DTL breakout this morning to confirm the BORS setup, but was unable to take the trade before it gave me a PB to enter @ 196.42$.
CELH - Been able to add to my position, to get to my full 20% I like to use when market & my performance is good. My entry was based on the DTL breakout that confirmed the BORS setup.
SPXL - Increased my market position to a full 20% as well on the DTL break that confirmed the mini channel breakout.
Trimmed positions:
Closed positions:
Tried adding to LNTH intraday, but closed it EOD as it closed below 71.24$ pivot
DAILY FOCUSLIST
6 names in my FocusList tonight!
We are still seeing some strength across the board tonight and many names breaking out from pivot lower in their base, but that’s not really my style. I prefer focusing on leading names that have a base that is not too deep and show tightness on the setup.
Tonight’s names are in these sectors:
Transportation
Drinks
Medical devices
Steel
Environmental services
👇✅
LNTH - Another one of my position that sets up for another entry as a BORS setup. We tested the 10dma again this morning before finding very good support and tried to breakout from 71.24$ pivot. We were not able to close above it, so alert is set back on for tomorrow.
CELH - Today, we confirmed the BORS setup with the more aggressive entry off the DTL breakout. You can still use the 71.29$ pivot to enter as the recent swing high breakout is not yet confirmed.
VTNR - Last month winner with a 66% gain in 6 days is setting up again for a potential 2nd leg up. Was flagging for 2 weeks now and Oil 2nd breakout might have trigged buyers at the 10dma retest. I want to see 15.79$ pivot taken out in order to confirm the BO10PB setup.
HDSN - This name is back in the list after a 1st failed breakout, we found good support at 9.22$ level and reclaimed 9.7$ level to close the day strong right below 10.29$ recent swing high (I don’t consider the high from the failed b/o). I’ll use this level as my alert.
ATI - After having breakout of his wedge, we came back retesting the DTL & 50dma and reclaimed the 28.04$ pivot today which I’ll use as alert if we open weak, or on a retest if we gap up and come back in intraday.
RELATIVE STRENGTH
I’ll start tracking top fundamental stocks with highest 6 months Relative Strength, holding up the best short term. (40% 1M-RS + 60% 6M-RS ratio).
During market correction, you want to keep track of these names as they will be the one to watch when conditions improves.
Relative Strength 40/60 - TOP 20:
NINE,CVI,CRK,AR,SD,EGY,SWN,GDYN,KOS,WTI,BTU,EQT,SQM,ESTE,HDSN,TALO,CPG,PBF,PTEN,AMR,
Relative Strength 1 Month - TOP 20:
BKSY,LPI,PLAB,WTI,ESTE,CPG,EGY,GDYN,SM,LTHM,FRO,SQM,SD,CDEV,SWN,DELL,DNA,ERF,BTU,COMP,
REFERENCES
Articles on my system:
I really hope that you enjoyed. If you did, please share it so that more folks can be reached and this Newsletter can grow. :)
Hi Alex, Thanks so much!
A few Questions:
CELH - you say BORS but it broke out of DTL on jun 2nd only. How can it be retesting when it just moved above? Or are we talking about the breakout from earlier in the month in the mid 50s? Also why the "S" for short in BORS? Seems like it would indicate a short setup but don't think that's what you mean.
LNTH: My chart shows we touched the 10dma on Jun 1 but stayed above for all of Jun 2nd? Lastly, for this one to be BORS wouldn't it need to test the original breakout from 65.68?
I did read your article on setup btw. Thanks again for this awesome service!