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Trading Prep DEEP DIVE August 15, 2020

[videopress kjJyab4Z]

Highlights

MARKET MOOD:

MARKET MOOD: The pull back last week feels like a quick pit stop and there’s a few reasons why.

  1. The pullback was very tight across the board and price is finding support on the daily time frames.
  2. All of the indexes are trading above their 5emas while still consolidating
  3. The Nasdaq has formed an ascending base pattern
  4. The distribution day count is at 3 on the S&P 500, as low as we’ve seen it in recent history.
  5. The number of stocks setting up is improving. We had 15 this week and the setups look excellent.

Now the number of stocks making new highs did dry up. We started the week with 82 new highs (about the avg we’ve seen the past few weeks) and ended it with 29 new highs. This doesn’t scare me off or throw up too many red flags because its one indicator among many. If I were seeing other signs of weakness, the NH v NL would help confirm the weakness. 

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TRADE IDEAS:

We’ve got some really interesting setups for next week…

If I weren’t going on vacation I’d be pretty active, looking to put 2-3% capital at risk on my swing account.

The best setups I’m seeing next week are in $AMZN $NTES and $SQ. These each scored high on the Trade Evaluator. Check it out here: https://docs.google.com/spreadsheets/d/1ll7reUC2OTBd0bEfELP-yyGQdq3fIQWMVFYOLnKiOQ4/edit?usp=sharing

The rest of the focus list, ‘almost there’., and day trades appear in the spreadsheet as well.

We had 15 setups this week, a solid increase from last week when we only have 5.

I won’t be doing any trading next week while I’m on vacation but I will be checking the message boards in the Trader’s Mindchat Room, answering questions, providing guidance, support, and maybe some trip updates. 😊

RESOURCES