Daily Trading Plan - 11/28/2022
The Nasdaq had a disappointing day as it traded down to the 21 ema. Despite a technical distribution day (a close down of .20% on an increase in volume from the previous day), volume was overall very light.
The SPX also fell today and fell back through 61.8% retracement level and the 4000 psychological level. The Power Trend remains on. The June to August rally ended with the SPX touching the 200-day. After Friday’s close we were less than 1% away from the 200-day. We will have to see if we can push through it or if this rally attempt is over.
Just like I’ve been calling for the dollar traded down to its 200-day moving average today. The dollar bounced strongly from that level staging an upside reversal putting pressure on equities. The 2-year yield is holding right near key moving averages and has a downward sloping trendline that could act as resistance. If it can push above the trendline that would be bad for stocks.  The 10-year yield remains below all its moving averages. The VIX moved higher today as a bounce from these levels was not surprising. Â
Current Holdings: ANET 0.00%↑ , ENPH 0.00%↑ , LULU 0.00%↑ , ON 0.00%↑ , PODD 0.00%↑
Most of my holdings dropped with the indexes today. Volume was below average on all of my names. LULU was the lone bright spot staying positive but closing well off the highs of the day. I sold WING as it undercut the low of 11/22 and failed to close above the 21 ema. ENPH disappointedly fell back below the $313 level but did manage to close above the 8 ema.
My focus remains on finding additional low risk entries in the coming days and weeks to size up into my current holdings. As always risk management is the number one goal so I will keep an eye out for any red flags. Only one trade I plan on executing tomorrow should it trigger.
With today’s pullback GFS is getting very close to where I would like to buy it. A gap down tomorrow could do the trick. 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.
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.