Daily Trading Plan - 11/16/2022
The markets gapped down and had a fairly quiet session consolidating in the range of last Friday’s bar. The pause in the indexes is welcome as we got extended from our moving averages after last week’s surge. Volume also came in lower than yesterday, showing today’s action is more in line with consolidating recent gains rather than distribution.
The SPX remains below the 61.8% retracement.
The dollar fell and a move to the 200-day moving average still seems likely. Yields were mixed with the 2 year positive finding support at its 10 week moving average, while the 10 year continued it’s recent decline.
Current Holdings: ANET 0.00%↑ , LULU 0.00%↑ , MELI 0.00%↑ , ON 0.00%↑
MBLY’s time in my portfolio was short lived after being bought yesterday it was sold today as it triggered my stop. ANET and LULU were down with the indexes, but found support and bounced on or near the 8 ema. Volume was also well below average as well on those leading me to believe this is a healthy pullback. MELI was also down on the day as it filled the gap from yesterday. ON fell on average volume to its 8 ema.
Two stocks are standing out to me after todays action. Both showed relative strength today managing to stay green in a red market.
CELH has been consolidating on light volume for 12 weeks now since making all time highs in August. Last weeks 8.24% gain is the heaviest volume week in the base and volume is on track to be above average again this week. CELH has been trading in a channel that it pushed above today, I was hoping it would have stopped just shy of the trendline, but it didn’t want to wait. This one has been tricky to trade due to it’s volatility, but the overall action is strong and I will consider taking this long on the open tomorrow if it doesn’t gap up or if it retest the trendline. My stop would be below todays low.
ENPH continues to trade in the handle area from its Cup with Handle base. Solar has been a hot sector all year and has many tailwinds. The standard pivot is $316.87 however the $312.50-$313 area seems to be where supply has been coming to market. If ENPH can push above todays high right around $313, preferably with heavy volume I will consider initiating a position. My stop would be below todays low.
Stocks listed in Tomorrows Plan are stocks with strong fundamentals and showing good technical action that can offer a low-risk entry. Not every entry will trigger, but also just because a stock is listed here does trigger does not mean I will take the trade. Portfolio exposure, market health and other factors will also be considered.
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The content presented is for informational and educational purposes only. Nothing contained in this newsletter should be construed as financial advice or a recommendation to buy or sell any security. Please do your own due diligence or contact a licensed financial advisor as participating in the financial markets involves risk.