PrimeTrading daily Update & Focuslist - 04/28
Good evening!
Market reacted well to mega caps earnings and held very important support area. Breadth & Setups are still very bad underneath though.
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
Market held 4138/4219$ support area from March lows, which is very positive. At that point, we are not very extended from 50dma, but we are enough to get a reaction bounce into at least 4277$ which would probably coincide with the 10dma retest as well.
At this point, I’m really observing what will happen, as we might even reject the 5dma tomorrow and head down from here. Volatility is still high @ 31.6$, so we can expect big unexpected moves in this market.
Compared to March lows, I don’t see a low of interesting individual names setups and even strong sectors. We need to see leadership before putting a real bottom, it’s not the case right now.
Overall, trend is still down & price below all kma’s. Be careful.
Breadth:
Underneath, the breadth is still bad with a lot of new lows everyday. More than 800 net new 52w lows is pretty high, indicative of a bad market.
McClellan came down to -199, so we did not move much since yesterday. Also, Equity P/C ratio is still relatively low at 0.68. No real fear in this market yet.
Sectors:
Solar very strong today following ENPH earnings, we’ll need to see follow through action in the next few days if this sector were to lead. Quickly, I don’t like how the stock was sold into today, but we’ll see.
Old leadership (Metals, Fertz, Energy, Oil) are back strong and a lot of names in these sectors are holding 50dma or even some trying to breakout.
Portfolio UPDATE
No new trades today. Still waiting for more clarity on the market & proliferation of setups.
New positions:
Trimmed positions:
Closed positions:
Daily FOCUSLIST
Market definitely not healthy and don’t plan to initiate new long positions tomorrow. Still, I like to be prepared in case we have a power move, which could always happen.
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:
PBF CRK NEX CEIX AMR ARCH BTU EQT FLNG AR ARLP CVE VLO TALO SD INSW AMR REI VGR ADM
REFERENCES
Articles on my system:
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