The Weekly Selection: 01/22/2023
Volume 022
Introduction:
Hello Everyone,
Welcome back to another volume of The Weekly Selection! I have to preface this by saying this weeks’ volume will be short and sweet. I am traveling this weekend and do not have access to my excel sheet or content templates.
With that being said, let’s get into the market outlook.
SPY 0.00%↑ ticked down this week from last, but overall showed us some important information in that it signified we are going to test the long term trend again and go for a push out. Something I mentioned in a voice call earlier this week was how close the moving averages are to the trend now, giving us alot more power on a potential breakout. As you can see, the last 3 times we have tested this trend SPY 0.00%↑ has been anywhere from 4-8% above its 50sma, an important moving average to follow. With this in mind, I am leaning bullish for the week ahead, and I’ll look to chart accordingly.
Quote of the week:
“disagreeing must be done efficiently”
- Ray Dalio
One of my favorite investors, Ray Dalio posted this quote in his daily principle of the day post on linkedin. With so much turmoil in the market lately, its common to see hot takes from everybody, both in agreement and disagreement. Its crucial to block out the ‘noise’ of those who make baseless claims with no fundamental backing to their answers besides “trust me” and other “loud noises” esque responses. As the market begins to shape up in this long down cycle, don’t let the noise get to your head, in either direction.
Past Performance:
Next time I travel I will have my performance report done before I go so I dont need to be at home to populate it. This week Ill just run through each stock. ADBE 0.00%↑ was a good sized winner, breaking out into its gap and netting a decent equity and options gain of 7 and 400%. DE 0.00%↑ got absolutely smoked on a breakdown of its moving averages. CELH 0.00%↑ got wrecked on news that flo rida was owed 82m in a lawsuit with $CELH. RYTM 0.00%↑ stayed pretty flat on the week. PI 0.00%↑ broke out on strong volume and only reeled back some of its gains. Some strong moves last week and I believe my picks just slightly outperformed the market.
Charts:
Alright lets get into this weeks charts. Per a valued readers suggestions, I will be putting in a bit more effort to explain why I like certain sectors/stocks compared to others. Keep and eye out for deeper analysis.
IBKR 0.00%↑ is up first. After reporting earnings last week, I am watching this stock for a push out of its quad top structure and into new highs. I personally like playing stocks around their earnings as they are usually more susceptible to liquidity inflow from funds, making more significant moves than an average Tuesday.
LSCC 0.00%↑ comes from one of my favorite twitter follows, dennis C. some of the semis have been hot lately and this one looks to be setting up. Typically when im looking at one stock I like to look for others in the field to identify who the group leader is, often times I find better setups this way.
MBLY 0.00%↑ is pretty sloppy looking but has been putting in a good effort. I like this over the trend break signified with the downtrending line. In a market like this I often run a scan for all stocks IPOed in the last year to find what's new and upcoming. Usually even with soften fundamentals, any growth gives them a better look than a mature company.
CRDO 0.00%↑ is gonna be the last one this week. In the same boat as MBLY 0.00%↑ its a fresh IPO name that has been basing since launch. I like that it's breaking over its long term trend here and will look for an entry.
Thanks for reading everyone. Expect a new educational article sometime this week.
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