Daily Trading Plan - 11/17/2022
The market gapped lower on hawkish comments from Fed President Bullard and initial jobless claims data but managed to close in the upper half of the daily range. Volume was light again as recent gains continued to be digested as moving averages catch up. Today’s action was overall healthy and still in line with the market making higher highs and higher lows. Â
The SPX remains below the 61.8% retracement but bounced nicely off of the 50% retracement level which lines up well with the high from the initial move off the bottom. One of these levels will need to break.
The Dollar pushed higher today with Fed President Bullard’s comments, but it did end the session well off its highs. Yields moved higher across the board while the VIX was slightly lower.  Unfortunately net lows increased from yesterdays levels.
Current Holdings: ANET 0.00%↑ , CELH 0.00%↑ , ENPH 0.00%↑, LULU 0.00%↑, ON 0.00%↑
Overall, the action in my portfolio today was good. From yesterday’s plan, I initiated positions in both CELH and ENPH.
MELI was the worst performer gapping below my stop and triggering a sell on the open.
ANET and ON both gapped down but quickly found support near the 8 and 21 ema and managed to close the session positive. Â LULU also put in a constructive day finding support near the 8 ema and creating an inside day on very light volume.
CELH opened below the trendline and back inside of the channel. CELH was one of the first stocks to turn positive on the day as it continues to show relative strength. As is pushed back through the trendline I began buying. ENPH also showed strong action today, turning positive early in the session. As this pushed above yesterday’s high, I made my initial purchase. We managed to close right below the $313 level noted yesterday. I will be looking for follow through tomorrow.
I don’t personally plan on adding any additional exposure tomorrow. I have started building positions in 5 quality stocks that could be potential leaders. My focus will be on finding additional low risk entries in the coming days and weeks to size up into these. As always risk management is the number one goal so I will keep an eye out for any red flags in my current holdings.
If my plan was to increase exposure tomorrow, these are two ideas I would be watching and willing to take should they trigger.
ENPH continues to trade in the handle area from its Cup with Handle base. The standard pivot is $316.87 however the $313 area seems to be where supply has been waiting. While today we pushed above that level briefly, we did close right below $313. I started this today, but if you missed it or chose not to, this could still be actionable tomorrow if we push through the $313 level.  Today’s low would be the stop.
TMDX broke out of a cup base with a powerful earnings gap up 2 weeks ago and has been consolidating near the left side high of the base. Volume has been well below average as it consolidates, and it has now set up a potential kicker pattern going into tomorrow. A gap up above $56.21 (today’s opening price) would trigger the kicker pattern. Stop would be at today’s low or closing price depending on how much risk you want to take. See linked article below for more info on Kickers.
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.