OVERALL DIRECTION: UUU (Uptrend on monthly, weekly, and daily time frames)
NEW HIGHS vs NEW LOWS: The NYSE broke out to fresh all-time highs this week. It’s interesting that the number of stocks within it hitting new highs aren’t as robust. New highs hit 177 on Tuesday but quickly tapered on Wednesday with only 59. This also has me thinking a sharp pullback may be in the cards.
MONTHLY CHARTS: https://www.tradingview.com/x/9PiIKdij/?aff_id=15325&offer_id=10
In the rare case that the market is extended like it is, we need to be even more selective with our entries. A pullback in the market is more likely to occur and can drop fresh entries along with it. Here’s the ones on my radar: https://docs.google.com/spreadsheets/d/19UjD8pISjyvHLJXBvgSoPmW7_-nYoPf4-nic4IH_770/edit?usp=sharing
Also note how many ideas are on the momentum day trading list! When there is this much momentum, its great for day trading!
When the market is extended like this, it tends to be less forgiving. If we’re sloppy with our entries, stops, plans, etc. we’ll get whipsawed. Only our strongest ideas are worthy of being executed. As of this writing, 2 ideas that look good enough to execute on are PDD and GOOGL. Since I’ve only made SOME progress on my recent buys (XPEL, AAXN, and AMD) I’m planning to place an order for PDD only. If I start making more progress I’ll look to add GOOGL. I’ll keep you posted inside the TMC Room.