I saw a lot of nervousness on the twitter feed today, with people talking about pullbacks. But from my perspective we've just had one, as we saw a -6.7% pullback in the Nasdaq over the last few weeks and then made a new high today. So until the breakouts start failing again the short term trend remains up, and today saw seven big name stocks including four of the FAANG stocks attempting to breakout again, although they all closed fairly weakly.
Here's the stocks for the watchlist from Tuesdays scans - AMRC, AMZN, BABA, FB*, FNGO, FOCS, GOOGL, ILMN, NKE, NKLA, NTES*, QCOM, RH, STNE, TGT, V
With the relaxation of the The Volcker Rule today, which was introduced during the Financial Crisis, banks could get a boost over the long term as they will have less restrictions to deal with. Unsurprisingly, Financials was the strongest sector today and bank stock made it into the watchlist for the first time in a while.
For the watchlist from Thursdays scans - ACN, BRP, CGNX, CTLT, ETFC, FTCH, GDOT, LLY, LSCC, MAS, MKC, MS, RAD, WING*, WST
Another day of rotation into some of the more unloved sectors with Industrials, Materials, and Consumer Discretionary have strong moves, while many of the leading stocks pulled back strongly to test their short term MAs. So a healthy sign in terms of market breadth, but not so nice if you focus on leading stocks. As can be hard to sit through the correction.
A very large list tonight with numerous cup and handle patterns forming and continuation breakout attempts. Volume was light, but in terms of setups forming, it was a very strong day imo.
A lot of pullback rebounds in the watchlist tonight, with numerous stocks continuing to setup still and breakouts have started working again. So seeing some strength, and the VIX closed below both the 50 day MA and the 21 day EMA that it's been bouncing around for the last few weeks.
For the watchlist from Wednesdays scans - AMGN, ATVI, AYX, CDAY, CRWD, CVNA, DT, IMMU, MAXR, NFLX, NOW, OKTA, RH, SFIX, SWCH, TDOC, TEAM, TTWO, WDAY
I chose to just observe today as multiple stocks gapped up strongly on the open. So on days like this there's not much to do but sit back and let the portfolio work, and observe the price action of the leading stocks and how they close.
The S&P 500 closed above the first resistance level within the recent consolidation, which was evident in the sectors that were strongest today as Consumer Discretionary showed the most strength. Leading Tech stocks started the day very strongly, but faded for most of the day overall, with many forming spinning top type candles with low closing ranges. So signs of exhaustion maybe in the leaders, but we could be setting up for a bit rotation again as some of the lagging sectors that make up the S&P 500 may take the baton for a while.
I also noticed a number of China related stocks in my scans tonight and a few made it into the watchlist below.
For the watchlist from Mondays scans - A, AMAT, BABA, BIDU, BVXV, CHN, CIEN, CRM, ELF, GRMN, KNX, LAC, LIN, LRCX, LX, MASI, MCHP, NBIX, SFM
