Underneath the surface the market continues to deteriorate, 1-month new lows and 3-month new lows continue to expand. The Nasdaq Composite is nearing all-time highs but yet the ten-day moving average of 52-week lows minus 52-week highs is almost at breakeven, but FAANG-T is doing well, and the indices minus the Russell 2000 is masking all the weakness. Negative breadth divergences are not really actionable, like everything else in the market, sometimes it works other times it doesn’t, but negative breadth divergence is weak signal more often than not.
Regardless, we still have some decent set-ups, and we have to give stocks the benefit of the doubt, negative divergences can right themselves if more stocks start to participate, which can very well happen.
$SGMO, $CHGG, $MTLS, $BZUN, $OLED, $WRLD, $RLGT, $PDLI, $OSIS are the names on my swing trading watchlist, these names are some of the top momentum names currently that are going through a low volatility period. We want to get involved at the first sign of expansion.
Here are two examples of what we look for;
Like Pradeep Bonde says- stocks move in momentum bursts that last 3-5 days.
Stock Of The Week Recap
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills. If this is something you can relate to, then this blog is for you.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.