Welcome to another Daily Update & Focuslist!
This Newsletter is a daily publication where you’ll be able to follow how I’m invested, along the names I’ll be looking to potentially enter tomorrow.
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
First with the bad, we had a nasty last hour as we rejected SPX 4582/93$ level that we defended successfully yesterday. Volume was a bit higher today than yesterday, but by a very thin margin.
Here’s the signs that could have given you the clues to at least stop buying and reducing exposure:
Extension from 50dma was 7%+
Number of successive up days stacking up @ 11
McClellan was very very high @ 250 Tuesday & 175 Yesterday
Eq. put/call was at extreme levels (0.4)
We were also coming straight into important prior resistance level, some volatility was to be expected (4582/93)
That’s why you have to follow the indices price action, the breadth & momentum indicators in order to assess where we are in the cycle.
Now with the good, we are still above 10,21 & 50dma and just had one of the strongest push in history. In fact, 50dma even aiming up. Ok we found resistance, but we are still above the 10dma and above 4524$ recent structure level.
I’ll give the chance to this rally to prove itself.
Breadth:
Stocks > 50&200 declined but did not crash, which is positive imo
Net 52/1M NH both positive, which is pretty impressive considering a consecutive 2 down days on 3 indexes.
McClellan osc. remain above 100 at 116. We are now at more acceptable levels, but still have room on downside.
Sectors:
Everything went red today, specially at the close. We had some strong sectors prior to this final flush. Cyber, Solar, Metals & Mining and Leisure were strong all day until the last hour.
Metals & Mining still leader sector imo.
Portfolio UPDATE
Did not do too much today in my portfolio, I tried to increase exposure in a couple names that were making nice continuation breakout, but I had to cut them when we lost 4582$ support level on SPX.
New positions:
Trimmed positions:
MP (Too much exposure for a weak day - Closed 1/3) I’ll be looking to add if we get another chance out of that inside day
Closed positions:
AOSL ( NASTY open and had to close being down 10% on the day) Overall a 6.5% trade due to my 1/2 trim into strength
MDRX ( Failed the pivot breakout EOD, so I decided to reduce overall exposure here
Maximum EXPOSURE
Based on my model, I'm now allowed to have 100% exposure
I tried to reduce the exposure due to high probability of a PB, specially when I saw that 4582$ level rejection.
Daily FOCUSLIST
Initial Stop loss is always placed at Low of Day, meaning I put my SL at the low of the breakout daily candle.
REFERENCES
Trading style:
I am a techno/fundamentalist swing/position trader. I’m a looking at a few days to few weeks timeframe for the bulk of my trades, but trying to keep the last portion for a bigger multi-months move if possible.
Articles on my system:
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