Weekly PrimeTrading Stocksletter - Week29 📈
PrimeTrading Market update, Watchlist, Focuslist & Stocks Setups 📈
Disclaimer: The information contained in this text is not financial or investing advice.
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PrimeTrading Watchlist
You can access my Excel spreadsheet which contains my current Stock watchlist.
You can navigate the spreadsheet and sort the list by any metrics you’ll want. Setups, Fundamental, Technical, Prime score, 1M return, 1M/6M Relative Strength…etc
I’ll update the watchlist on a weekly basis.
Here:
General Market Review
QQQ
State: Uptrend
Extension 10WMA: 3.01%
Week Return: -0.81%
We managed to make an ATH early in the week but reversed straight down from there and even loosing the short term ema’s on the daily. From a weekly/daily perspective, I would say we have still room to go on the downside to at least the 10WMA.
The positive aspect I see, is that we closed the week lower yes, but on lower than average volume and even lower than Aug. & mid-Feb intermediate tops. If volume picks up next week, then it’s another story.
I talked about the current breath of the market some weeks ago but now we are getting at extreme levels that could indicate more trouble ahead. In the recent weeks, less and less names were participating in the market advance and the indexes were basically supported by mega caps.
This will often indicate a market top in progress. It is not a perfect market timing tool, but something you keep in mind when price action confirms a move.
Now with indexes and leading names breaking down, this might confirm the bad market breath.
Also, I track CPC (Put/Call ratio) as a contrarian indicator. Even if we have printed a high number friday at 0.98, we are still very low at 0.77 on a smoothed chart. (35ma)
Indicates me that have still room for higher and sustained high ratio prints before we are at a market bottom.
If it’s in fact a top, then this is just the beginning of a POSSIBLE correction.
SPY
State: Uptrend
Extension 10WMA: 1.56%
Week Return: -0.96%
Rought week for SPY as well as we had a decent week until friday were we broked down from Short term ema’s on above avrg volume.
We are still avove 5/13 Clouds and in a clear uptrend, I want to see a clear break of this area if we are to call this a trend under pressure or even a correction.
A retest of the 422$ pivot level would also be possible a constructive here. Approx. -2% from here.
IWM
State: Range / Wedge (under pressure)
Extension 10WMA: -4.21%
Week Return: -5.05%
Smallcaps are a completly different story here. We had a very bad -5% week and the more I look at it, it seems it wants to roll over from here. We closed the week at a VERY IMPORTANT level. We are right at the confluence of both the ascending wedge from Feb. and also 212/215$ support level from our range formation.
We managed to find support Thursday at these level, but no buyers stepped in friday to push higher and we reverted right back to it on again higher than avrg level.
If we break that level early next week and it’s not just a shakeout, we could really be into some mid-term sustained correction. We I fear, is that this weakness started to spread into the SPY & QQQ’s friday.
If we lose it this week, I will be looking at the longer term ema’s for a next potential support zone.
We have seen that 34/50 cloud be really supported in the past as 2016-19 action below
That could coincide with 204/208 support area I highlighted on the weekly chart.
IWO
State: Range (under pressure)
Extension 10WMA: -4.02%
Week Return: -5.93%
Range still at t IWM. Both indexes are following pretty closely.
Current PrimeTrading positions
You can see my Tweeter feed to see my current positions annotations, but here is my current holdings and position size for now.
BNTX - BioNtech (+4.53%)
Entry : 221.43$ on wedge breakout close
FA score: 76
BNTX & MRNA are the only 2 names that showed incredible strength this week on the overall red market tape.
I entered after the wedge break on above avrg volume Thursday.
Perfect entry of the 10WMA & April 215 pivot high retest.
FocusList & Weekly trade Setups
To be honest, there are really not any interesting setups this week, apart BNTX which I already have a position, and MRNA which is pretty extended at this point.
While the market is under pressure, the greatest indicator is that there is no nice setups and breakout have been failing for a couple weeks now. I’m playing very light and being VERY selective in the names I’m looking at.
When the market will be healthy, you’ll know for sure, and there will have too much setups for me to add here and I’ll have to even choose the best one. This is not the case right now…
There is ONE other name that I’ll be looking closely this week, it’s INMD.
INMD- InMode
Entry : 108.75$ pivot break
FA score: 58
Really like the story of this business. They reported increadible top & bottom line results last Q and just raised guidance which created that huge push last week.
I LOVE to see big candle like that on 5X avrg volume. More importantly, there were not a lot much of selling volume on the pullback to the 5/13 ST cloud. Volume also picked up higher friday (on a market bad day) to find support at these levels.
If we were in a good market, I would have opened it friday, but considering the current environnement, I will stay on the sideline and let the price work and maybe form a little consolidation under the 108.75 pivot.
If we break that level, I’ll most certainly be interested to engaged in the name.
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Cheers! 🍻
Alex