Updated Focus List & Market View Post Memorial Day Weekend
Stocks on my focus list & areas of strength I'm watching
Overall View of the Market:
Semiconductors, Packaged Software, general Technology, and Apparel/Footwear are some leading groups. These few are the place to be - no questions asked.
We’ve also seen a significant amount of earnings gappers work out to the upside, and this EGU + HVC setup is my go to in the market. Will be heavily focused on executing this edge above traditional breakouts/pullbacks over the next couple of weeks if we continue to see positive reactions. If you’re interested in learning how to add a new earnings gap up edge to your toolbox, sign up my Earnings Gap Up Mastery 5-day Educational Email course here:
On the topic of poor breadth - it’s no real secret that the majority of gains from the Nasdaq & S&P500 this year have come from a handful stocks. While this isn’t the best-case scenario for a sustained long-term uptrend, there are still opportunities to make money. This is the only thing that matters - our job as traders/investors is to hop on the trend and be in the names that are working. Using poor breadth as an excuse for your underperformance won’t cut it.
Let’s take a look at where we stand on the SPY, QQQ, QQQE, & IWM:
SPY: Strong action Friday - am expecting breadth to pickup in a big way if SPY can continue higher from here.
QQQ: After a sharp pullback to the 10EMA, the QQQ gapped higher on Thursday & continued Friday after NVDA sees an impressive reaction post-EPS report. This ETF has been leading the charge in 2023 and doesn’t look like it will stop any time soon. We are short-term extended above the rising 20EMA but this type of action can continue for multiple sessions at a time if looking back at the rally in February.
QQQE: Equal weighted QQQ seeing volume Friday and a run-in with previous resistance of $73.50. A continuation higher Monday would be a great sign imo, lock people out waiting for a pullback/consolidation. The other scenario that I would view as bullish is a 1-2 day consolidation below $73.50 before moving higher…
IWM: Doesn’t paint the most promising picture - stuck in a range between 170 & 180 with the downsloping 200DMA acting as resistance earlier this week. Think growth stocks & market in general will get a strong kick to the upside if this can break above 180 & hold over the next couple of months. But, if this continues to consolidate above the MAs while the QQQs move higher, we’ll still have plenty of opportunities to make money.
WIDE Focus List:
I have 3 main watchlists that I track & update on a daily/weekly basis. These 3 watchlists are the following:
Earnings Gap Ups
Momentum Names (ShortStroke + HTFs)
From this list, I create a WIDE Focus List, which will house 20-30 names that I want to keep a closer eye on a daily basis. These are the names I’ll be cycling through during the session as I gauge the overall action.
Here’s a look at the current list (29 names):
MRVL SMCI AI NVDA ZUO AMD PLTR URBN ELF IONQ XPER MNDY ASAN LTH TOST ACLX CRSR SPHR DASH NXT FSLR DUOL GEHC NNOX DKNG ACVA CELH APP APLD
From this point on, I’ll go through each of these names and highlight key levels of interest. If the name looks actionable tomorrow, I’ll put it on my focus list (which I’ll cover next).
Let’s dive into the most actionable names on this list for tomorrow:
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