Daily Trading Plan - 12/01/2022
After yesterday’s strong advance the Nasdaq managed to close slightly positive and hold onto its gains. Volume came in lower than yesterday, which was to be expected considering yesterday’s advance was on very heavy volume. It would have taken real power to top that.
The SPX closed the session pretty much unchanged and remains in a Power Trend. It successfully bounced from the 200 day moving average today and remains healthy.
The dollar sliced through the 200-day moving average continuing to show weakness. Similar to the dollar, yields continued to fall. The VIX also fell, managing to close below the $20 level. 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%↑
Action in my stocks to day was positive overall. ANET, LULU and PODD all advanced with PODD triggering the trendline add on I discussed yesterday. ENPH bounced from its 8 ema and now has me looking to add into new highs. GFS and ON were down on the day but both closed in the upper half of the range after finding support. I see nothing wrong with the current action.
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.
ENPH sits just below all time highs and looks like it could be ready to move higher. After trading down and bouncing from the $313 level and 8 ema If ENPH can push into new highs tomorrow I will look to add to my current 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.