Weekend Review

Markets finally crack below 200MA. Leaders hold well overall. Do we get a proper flush now?!

POSITIONS

Indexes finally cracked on Friday with QQQ SPY breaking down below the 200MA.

Felt like leaders held well overall. Obviously some wide and loose action in some given the market volatility but bigger picture patterns still intact for now.

WEEKLY POSITIONS REVIEW

VRT

Took my add off this at breakeven. Still doing great to hold above 20ema for now. Could be working on a potential ascending base pattern with a aeries of higher highs and higher lows. See if it can hold up if market weakness further

Weekly still looks great. You can see the extension from the 10WMA on the bottom indicator. Ideally just goes sideways whilst that catches up

DELL

Gapped up on some negative SMCI news that they will benefit from. Looked strong initially but eventually succumbed to market weakness.

Weekly still building the right side of this big base. Got extended from the 10WMA so any sideways whilst that catches up would look good

GEV

Reversing with the market but almost closed above all MA’s. Took my add off for a small win with the potential gap down risk Monday and to take some risk off the table.

Weekly holding up well so far with the 10WMA caught up to the bottom of this consolidation

SNDK

Took add off at breakeven. See how it can hold up if the market pulls back further. Still think it looks great for now and any constructive consolidation above 20ema/10WMA would look good

Weekly you can see the v-shaped recovery to new highs off the 10WMA. Some consolidation here would look good.

TER

Still building a consolidation above 10WMA for now

Weekly you can see the big run off the lows out of this 4 year base. See if it can continue to build out a base here above 10WMA

Overall think positions still acting well, especially given the weakness in the market and overall stocks.

I’m a more longer term swing/trend trader so I’m not looking for 20-30% gains for a quick sell. I have to accept that I’m going to have some gains that I will often give back and sell at breakeven. Just part of the game.

For me it’s about trying to get positioned in potential market leaders following a market consolidation and then sitting tight and letting them work. I’ve got cushion in my stuff so just going to see how it plays out.

If the market can flush out quickly then my stuff may be able to withstand that and hold the bigger picture structure, and these could be the ones that could lead us higher.

If we see an extended market pull back then eventually everything gets hit and I’ll be out of them.

I’m not in the prediction game though, nobody knows. I’m just going to play my hand and see what the market decides it wants to do.

I have definitely done more than I should throughout this correction and something I need to work on. I need to be better at doing less early in a correction after a strong market move and then look to be more focused later where we start to see stocks decouple from indexes.

In relation to this, someone asked me on Twitter if I look at stocks or indexes more and this was my response:

I would say a bit of both for me.

If the market is in a full on downtrend then that would take precedent. But then again you won’t get many setups anyway.

If the market is sideways or has stopped falling (but still technically in a downtrend) then that’s when I start to look more at setups, and then how they are holding up and following through would start to take more importance for me.

But I think that’s just a function of my strategy as well. I tend to be more longer term than most. For example I still have a portion of SNDK position from $234.

I’m looking to get positioned early in a new trend in stocks coming out of bases ahead of the market and then sit and do nothing. As my lower win rate and lack of available screen time means I need to be able to capture bigger moves.

I guess if you’re more of a shorter term swing trader that predominately sells in to strength then you can be more patient to allow the stocks and market to show power before getting involved as you can capture smaller moves and rotate in to more fresh setups.

No right or wrong in my opinion, just important to know your strategy and numbers and stick to it.