The Weekend Routine 8-21-2022
A gap to fill
The Market:
The Nasdaq ended its four-week run of gains with a 2.6% loss for the week finishing near the lows and ending its streak of net highs on Friday. The Nasdaq was overbought and very extended from its short-term moving averages, so a pullback is not surprising. There is an unfilled gap from August 10th that lines up with the rising 21-day ema about 1% lower and I do expect that gap to be filled next week. This would be healthy for the market IF leading stocks such as $CELH $ENPH $SWAV $ARRY are able to hold gains and consolidate while not rolling over. This would also put in another higher low if the Nasdaq is able to hold there.
We are still in a Power Trend telling us that we should remain bullish, however caution is warranted after the action this week. The Nasdaq picked up a distribution day and the SPX hit resistance right at it’s declining 200 day moving average.
Secondary Indicators:
Put Call Ratio: Neutral reading at .99
Percent of Stocks above the 50 day: Nasdaq - 74% S&P - 88%
Percent of Stock above the 200 day: Nasdaq - 38% S&P - 43%
Looking Ahead to Next Week:
Next week is a busy one on the economic front. We have PCE data on Friday, GDP revision on Thursday and the headline of the week the Jackson Hole Economic Symposium where we will hear from Chairman Powell. The markets reaction to his speech could be the deciding factor if this rally continues or dies.
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Current Portfolio:
ARRY – Finished the week down, however respected the earnings gap up low and closed right at the earnings gap up open. Stock is up over 150% in 4 weeks.
CELH – Closed the week around the same price as 2 weeks ago when the Pepsi deal was announced. Holding 21 ema as support as it consolidates recent gains, weekly volume decreasing.
ENPH – Inside week on decreasing volume. No sellers in this as it hasn’t even came back to its 21 ema. Â
Actions taken:
Bought: ARRY on touch of 8 ema after earnings gap
Sold: N/A
Potential Leaders:
ARRY, BOX, CELH, DVN, ENPH, EQT, GLNG, LNG, LNTH, LPLA, NFE, ON, PCTY, PRVA, SWAV
https://www.tradingview.com/watchlists/84325802/
Not seeing a lot of actionable ideas for Monday given the pullback this week in the market. Ideally, volatility will contract  and set up some quality patterns with proper pivot points towards the end of the week or beginning of next week.
Actionable Ideas:
GLNG – Failed Breakout Pullback - ~ $25.75
GLNG pushed out of a 10 week cup base on a nice surge of volume after strong earnings. A pullback now to the 21 ema would trigger a failed breakout pullback buy.
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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.