Good evening!
Market found buyers where it has to on all indices. Will that be enough to put a bottom, let’s try to find that answer!
Enjoy ! ✌️
Disclaimer: This newsletter is not financial or investing advice. The information is for education purposes only and reflects only my own operation.
Market REVIEW
We opened the week with a nice flush this morning and found support at the 4219$ area I was talking this wknd as potential support. We also managed to close above 4277$ level that I wanted to see hold. Overall this is a very positive move on volume. However, last 2 days and specially the weekly chart makes me want to see a confirmation & follow through tomorrow to really consider this could be a bottom. Right now, I am still leaning more for the 2 days rally into the 5/10dma and snap back down. We are still below all kma’s.
Note that tomorrow after close we’ll have MAJOR earnings, such as MSFT, GOOGL, V, GM, etc. I think that the market will wait for these big companies ER (that make a huge portion of weighted indices) before confirming a move, either way.
Breadth:
Overall, breadth was not confirming the move on the indices today. Specially net new highs that were heavily red and red advances as well. McClellan osc. begins to be stretch in the negative, but nothing extreme pointing to a bottom imo.
We’ll really have to wait for tomorrow A.H. to clarify the market direction
Sectors:
Previous leaders like Miners, Energy, Metals, Oil, etc. continue to lag the market today again.
Staples (defensive) still green today.
Cyber, Internet & Leisure are really the top sectors imo.
Portfolio UPDATE
No change in the portfolio today. I still hold my Russel 2K short through the SRTY 3x inverse ETF.
Small red day, but still sitting on a 11% cushion on the position, I still plan to trail the 5dma for a full exit, and might take partials along the way.
No violations today, we’ll have to see tomorrow if we close above that 5dma.
New positions:
Trimmed positions:
Closed positions:
Daily FOCUSLIST
Lot of BORS setup today as we retested breakout levels on many names with the last 2 days selling. We’ll have to see if we follow through tomorrow or not. Don’t plan to add a lot of exposure as I’ still very defensive and managing my market short position.
Relative Strength TRACKING
I’ll start tracking top fundamental stocks with highest 6 months Relative Strength, holding up the best short term. (10% 1M-RS + 90% 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 - TOP 20:
CRK CAR PLAY PBF HST MAR PLYA VGR UAL DAL SIMO H SMPL AAL REI ATER STLD MDVL EQT DRH
REFERENCES
Articles on my system:
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