So we’re now wrapping up the first quarter of 2021 and also closing on Monthly candles which will be interesting to look into end of day. Every hot momentum stock especially tech has gotten crushed into the end of the first quarter, so those became the laggards, while other stocks/sectors led the market higher ($$ sector rotation is healthy).
For this daily watchlist to be most effective for you, I recommend taking time to set price alerts, because once the market is open & moving, it’s easy to get faked out by price action. When we have alerts set, it keeps us from overtrading and letting the stock/index and trade opportunity come to us. Without knowing those levels leaves you at a disadvantage when things get crazy, one way or another. I personally use TD Ameritrade’s Think or Swim for alerts, in addition to TradingView.com (must pay for non-delayed price data)
I am doing something new here and adding the TOP 10 holdings for each index that we analyze. The purpose of this is A. get familiar with what stocks influence the index the most, and B. when we see a market trending up or down we can dig into the underlying stocks and find some solid plays.
One thing to note before we talk about the levels -> we currently printed an inside candle day on DIA and SPY, which means: https://www.investopedia.com/terms/i/inside-days.asp – (this concept can be applied to all other stocks/charts)
NOTES BELOW FOR $DIA:
One way to view this action is to look Tuesday 3/30 candle’s high and low (and set alerts). If it breaks above, then you’re looking at Monday, 3/29’s high of 331.60 as the next level it MAY possibly go towards (and break above?)
If it breaks below, then you’re looking at Monday, 3/29 low of 329.29 (just noticed the interesting play on numbers here – remember, algo’s rule this market).
This gives you a price range for price on Wednesdays session to be aware of. If we see Wednesday’s action dip BELOW Tuesday’s low (marked on the chart in green @ 329.78) then we are looking at 3/29 open + low of day for the next possible zone it may go to (IF it breaks Tuesday’s low) make sense? You’re looking at the previous price action for areas of support and resistance. Floors and ceilings. Stocks and index’s tend to have areas where prices BOUNCE (support) and areas where prices FALL (resistance).
As always, the levels are highlighted in bright green on the right side. (reminder – make sure to take the time to set these alerts in advance)
TSLA is starting to set up again and liking the action from yesterday’s bounce off 591 lows. I can definitely see a character change in the price action from yesterday and we’re seeing a gap up in pre-market trading. This is going to be a very simple chart on TSLA. I have more advanced ones with a ton of trendlines which is my favorite, but sometimes simple is best. In this approach I’m looking at the 20SMA. Historically anytime we close above that, TLSA puts her running shoes on.
Here’s one for a long swing play. BA is a great daytrading name, but overall I see a much larger move on the horizon, that will be best taken advantage of by long calls/shares or vertical spread strategies.
FDX worked really well on the breakout of the inside candle. This is why these patterns are powerful because they provide clear levels to break above. Once it does, it usually moves nicely (up or down out of those inside candles). THIS LOOKS GOOD TO 295-300 ZONE