Alex's daily Market Update & Focuslist - 05/20 🖊️
Disclaimer: This newsletter is not financial or investing advice. The information is for education purposes only and reflects only my own operation.
Market closed pretty much unchanged today during normal trading hour. However, we tested an interesting level pre-market. We tested and undercut by 2 ticks last Thursday 3858$ low. We then found buyers and market was trading in a range pretty much all day.
These levels might act as support on the downside:
3858$ (1% move)
3832$ (2% move)
3722$ (5% move)
3675$ (6% move)
For now though, we’re still BELOW ALL KMA’S, so this is a full RISK-OFF market for me right now. BUT, always stay open, positive and flexible!!
Still have NET new lows on both NYSE & NASDAQ.
VIX retraced back below 30… interesting but we’ll need more confirmation
P/C ratio still not spiking, so no real fear in this market yet. We want to see equities spiking above 1/1.1
McClellan ratio back to 0.
It’s option expiration tomorrow. So you might see choppy action.
Apart Gold miners that had a good day but are really beaten up, we find our Solar & Clean energy sectors still being in the top performers tonight.
2 back to back strong day for these sectors, I’m taking notes. I’ll have to investigate more in these sectors, but for now the solar names (ENPH SEDG FSLR) are still below all kma’s despite showing strength, so no trade there for me. They’ll give proper entry down the road. TAN at an interesting spot right at his 50dma.
CL_F still not crashing and rejected both the 50,21 and 10dma today. If we get a reclaim of 111.37$ pivot, watch the Oil sector again.
Nothing for me today as market is still below 5dma. Patience, I see many stocks building beautiful base right now and sectors that begin to strengthen, but the market is not yet ready imo. Think risk first.
New positions:
Trimmed positions:
Closed positions:
Despite having a market below the 5dma, I found many interesting bases forming near buy point tonight. This is interesting as we’ll want to see stocks tighten and breaking out, even before the market reverse. That’s what happened during last March rally.
7 names in the Focuslist tonight. Might only take day trade if market is good tomorrow, or keep 1 position if we close above the 5dma. We’ll see.
The beauty to buy ON STRENGTH, is that if the market open weak, alerts don’t get trigged and you don’t open exposure. If market open strong and you get alerts, you only build exposure progressively, and in case the market rolls over, you get out at breakeven.
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