Daily Trading Plan - 11/30/2022
After mixed economic data premarket, the market waited patiently for Jerome Powell and he didn’t disappoint, unless you are a bear. The market cheered as Powell said it is time to moderate the pace of rate hikes and he was seeing progress. The Nasdaq rallied 4.41% and reclaimed both the 8 and 21 exponential moving averages. Volume was also above yesterday’s level giving us a fresh accumulation day.
The SPX remains in a Power Trend and flexed its muscles today reclaiming the 61.8% retracement, the 4000 psychological level and most notably the 200 day simple moving average; the same spot the last rally attempt failed.
After an early push higher, the dollar fell back below the 8 ema and closed near the lows. A move back down to the 200-day moving average seems likely. Similar to the dollar, yields fell after opening higher. The 2-year poked above the downtrend line but ultimately closed below it along with its 50 day and 10 week moving average which had been acting as support lately. The 10-year fell back below the 8 ema and looks set for lower prices. The VIX fell hard, closing down about 6%. The dollar, yields, and the VIX falling are all positive for equities.
Current Holdings: ANET 0.00%↑ ENPH 0.00%↑ GFS 0.00%↑ LULU 0.00%↑ ON 0.00%↑ PODD 0.00%↑
A very solid day here as the market rallied. None of my stops were triggered in the morning as markets chopped around waiting for Powell. And while I expected prices to rise with the indexes pushing higher, the volume was higher on every one of my holdings which makes it more meaningful. ANET made new rally highs. ENPH showed the biggest gain as it reclaimed the pivot and $313 level. ENPH sits right below all-time highs. GFS had a very powerful upside reversal after morning weakness. This strengthened the set up in my opinion, shaking out any of the last breakout buyers. LULU continued to show its strength getting to new rally highs. ON rallied nicely after finding support at the 21 ema the last 2 days. PODD also made a nice move and sits right below the $300 Livermore level.
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.
There is a very important PCE report premarket tomorrow that could move the market strongly in either direction. So, I will be prepared to play defense as well as take on additional risk.
ON 0.00%↑
ON rallied beautifully today after find support at its 21 ema the last few days and now has a multitouch trendline. The daily chart is a little wide and loose, but if you zoom out to the weekly chart there is much less noise, and it is coming together nicely. If the market follows through tomorrow, I will look to add to my position through the trendline.
Similar to ON, PODD rallied very nicely today on the back of Chairmen Powell’s remarks and has formed a very clean multitouch trendline. If this can push through the trendline and take out the $300 level I will look to add to my 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.