The holiday shortened week started with a gap down and a loss for the Nasdaq. Volume as expected was very light. There was no structural damage to the chart as the Nasdaq remains above the 21 ema and 50 day moving average.
The SPX remains between the 50% and 61.8% retracement levels after finding support at the 8 ema today.
The Dollar and Yields moved higher across the board while the VIX was lower. Net lows remain on the Nasdaq.
Current Holdings: ANET 0.00%↑ , CELH 0.00%↑ , ENPH 0.00%↑, LULU 0.00%↑, ON 0.00%↑
No changes here today. Light volume across the board as all my positions pulled in with the indexes except for LULU which was positive and reclaimed the 8 ema. CELH and ENPH remain right below their pivot points. ANET briefly pushed higher today but succumbed to the market weakness. ON continues to consolidate holding the 8 ema.
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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.
One I am currently holding so I won’t be adding quite yet, but this continues to build the right side of its base after reclaiming the 10-week moving average. This is stuck in a channel still and battling with the Livermore $100 level. There is a kicker pattern set up going into tomorrow. A gap up above today’s opening price of $96.31 would trigger the kicker. The stop would be today’s close or low depending on your risk tolerance.
Another one I am already holding and again won’t be adding to yet, but there is still a low-risk entry if you are not already in it. This has attempted to breakout of its cup with handle base a few times but closed below the pivot every time. The standard cup with handle pivot was $316.87 however, $313 seems to be where supply is waiting. If this can finally break that seller it should be ready to go. Overall structure is still intact.
This one I am looking to make my 6th position. GFS is a young IPO that has finally formed its first proper base. The weekly chart shows tons of accumulation and a strong volume profile. This broke out of a 13-week 29% deep cup base last week and closed right at the highs. I will be watching this to pull back to the 21 ema to initiate a position. It may not happen, but if it does, I will be ready to pounce.
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.