PrimeTrading daily Update & Focuslist - 03/24/22
Welcome to another PrimeTrading daily Update & Focuslist!
This Newsletter is a daily publication where you’ll be able to get how I’m invested, along the names with precise entry points I’ll be looking to potentially enter tomorrow.
You’ll find the following information:
Market quick review
Portfolio update
Market exposure
Daily Focuslist
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. Keep in mind this information if trying to replicate my operation. (Which you should not do blindly)
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 pulled back today as expected & volume stayed low like we wanted to see. Internally, many stocks in strong sectors continued to act strong. There was no real damages and that’s constructive.
I’ll be looking at the potential 10/21 dma retest on S&P. It’s a 1-1.5% move from here, so we might have another down day tomorrow before closing the week strong Friday. (We’ll see about that…!)
Breadth came down a bit but nothing concerning.
McClellan came down to 126 which is good as we were really extended yesterday. Maybe one more down day and we might get to a potential bounce level.
Also noticed that even with a 1.3% down day on SPX, VIX still below 25 and only increased by 2.75%. That’s good.
Sectors:
We had yet another sector rotation today as Metals Chemicals Miners Energy & Oil re-took the leadership. These groups are really on a run and are acting really well, each PB is being bought at the moment.
As you’ll see in my Focuslist, I think they will still be strong tomorrow as many names have either setup well or closed strong today.
They are my focus right now.
Portfolio UPDATE
New positions:
RES (Opened the trade & closed it with a small 1% loss before close as I wanted to reduce exposure & didn’t want to carry a red position overnight)
Trimmed positions:
MP (1/2 pos)
CF (1/2 pos)
PANW (1/2 pos)
TGI (1/2 pos)
Closed positions:
Market EXPOSURE
Based on my model, you'll find the OPTIMAL market exposure I'm aiming at having right now.
Still a full risk on environment. However, I think we were due for a pullback after such a run off the lows and extreme breadth readings. I trimmed many names & will look how the market is supported at the S&P 10&21dma before increasing my exposure again to my OPTIMAL exposure.
Considering it’s the first real stress test, I rather be cautious than too aggressive here. Yes, have a system with rules, but you always want to leave space to be creative about it. Trading is still part Logical and part Art imo.
Daily FOCUSLIST
REFERENCES
Feedback!
Thanks for taking the time to download the PrimeTrading Newsletter!
I would highly appreciate if you could DM me with constructive feedback or new idea for that newsletter.