Disclaimer: This newsletter is not financial or investing advice. The information is for education purposes only and reflects only my own operation.
This was an interesting day!
After breaking down below Feb 24th low, we’ve had one of the biggest one hour rally I’ve seen in a long time. +2% in the last trading hour alone.
This power hour brought us back above 4138$ level that I see as being really important from the recent consolidation. It also created a proper U&R (Undercut & Rally) setup from March and also last week lows.
One day does not make a trend, we are still below all kma’s and specially a declining 5dma. However, that’s the kind of power action defending an important level for a 2nd time that makes me put some early exposure.
If we get follow through I will be able to build on that, if not, I simply get out B/E even quicker than I got in. I like those odds.
Breadth was really not great, but with positive action being in the last hour, this is kind of normal. If we get follow through action tomorrow, I’ll want to see better breadth than that developing, or this reversal will be in danger.
Not a big day tomorrow with Job Openings at 10:00.
Wednesday will be the big day this week with the FED rate decision.
I like to see Retail, Semi’s, Internet & Software stocks being up there. We’ll have to see if they can follow through tomorrow.
Note the very defensive Staples sector took a hit today being the weakest sector. Might mean something, we’ll see!
When I saw the strength of the last hour rally, I opened a long $RTY position (TNA), along 2 names that were strong in my FL.
Really like AN, it showed incredible RS all day even when the market was down more than 1.5%. I have my cushion to test the market & see if we can follow through tomorrow. If not, I’ll get out quickly without damages.
$PBF is a name that I shared this wknd as being one of my top Oil name. With the Crude setting up for a big WB breakout from the 50dma, I wanted to get exposure there.
New positions:
TNA (U&R from March & last week lows. RTY was leading SPX, so I took exposure to small caps instead)
AN (Weekly WB)
UAL (BO10PB)
Trimmed positions:
Closed positions:
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 - TOP 20:
LNTH,CRK,CEIX,PBF,ARCH,AR,VLO,AMR,SD,CVE,EQT,DK,TALO,REI,MPC,CTRA,STLD,VGR,INSW,ENLC
Articles on my system:
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