Software Stocks Stand Out | Market is at a Key Level

Hi everyone,

I hope you are having a great Saturday!

In this post I’ll concisely share my thoughts on the week’s action. At the end I’ll also share my wide watchlist for this upcoming week which you can use to source trading ideas.

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Now let’s dive in ↓

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Last Week’s Market Action

This week on the market indexes we saw a breakdown through a tight range that had been forming and a pullback below the moving averages. We closed just above the 50 sma on Friday

Overall we remain in a Choppy/beginning new uptrend

The QQQ, Nasdaq 100 ETF:

Let's cover each day's action:

• Monday - Gap up then downside reversal

• Tuesday - Consolidation Day

• Wednesday - Break below the range & pullback to the prior week's highs. Decent close

• Thursday - Large gap down below the moving averages but a strong close

• Friday - Attempted rally up that then reversed & closed near lows and Thursday's close

The IWO remains weaker overall and finished near the week’s lows.

Volume

Volume was lower on Friday for the NYSE & Nasdaq.

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down- Below Declining

Short-term - 21 ema - Up/Mixed - Just Above Flattening

Intermediate term - 50 sma - Up/Mixed - Just Above Flattening

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Software was the standout performer this week and looks to be the new leading group.

Oil and Energy, Bio/Pharma stay strong as noted the past few weeks. Oil and Energy names were especially strong to end out the week and are now ST extended

Cybersecurity stocks are also a theme worth watching.

Here’s a Weekly Group Performance chart from TraderLion Private Access:

Here is a sort of the Deepvue Universe list by Weekly % Gain, you can see the themes here:

Key Stocks in Deepvue

IOT consolidating above the base

IONQ would like some tightness before the base breakout

NVDA Semis as a group have weakened, this might need more time to base.

TSLA at a key spot, needs to step up and get above the MAs

Wide List in Deepvue

I build this list by going through multiple screens in Deepvue such as my Deepvue Universe Screen, Pure Momentum, Liquid Leaders, and IPOs as well as my Leadership list and previous wide list.

I add any stocks that stand out to me based on their pattern, show of strength, or other interesting characteristics. This is the first step for building my weekly focus list and gives me a sense of market health and group rotation.

AAOI ABNB ACHR ADBE ADSK AEHR AFRM AKAM AMGN ANET APP AUR AVAV BILL BKNG BP BRZE CAMT CAT GDC CELH CLS COUR CPRT CRWD CVNA CYBR DASH DBX DELL DLO DO DPZ DUOL ELF ESTC FRSH GLOB GOOG GPN GTLB INSM IONQ IOT KD LBRT MA MELI MNDY MU NBIX NFLX NTAP NTNX NVDA NVO OKTA ON ONTO ORCL PANW PATH PLTR PSTG RIVN ROIV RPT RYTM SAIA SMCI SPLK SU TDW TEAM TLRY TSLA TT TTWO TWLO TWNK UBER UPWK VEEV VMW VRT X XP ZS

I’ll post my focus list tomorrow

Weekly Market Thoughts

Stocks handled the pullback reasonably well and the software group stepped up. Semis as a group weakened so need to shape up.

I would like to see the IWO recover and get back above the MAs.

Continue to manage risk and take it day by day.

What are your thoughts on the week’s action? (Leave a comment below)

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