The Weekly Selection: 02/26/2023
Volume 027
Introduction
Market enthusiasts,
Welcome back to another volume of ‘The Weekly Selection’, where I go through the past, as well as the upcoming weeks’ market analysis. In addition to this, I will post my favorite charts and trade ideas for you guys to have a look at and see my thought process behind what I’m looking at going forward.
Lets start by taking a look at last weeks chart, and how I think it will affect this week. Below is the SPY 0.00%↑ index, with some light annotations to open the discussion:
As it can be observed, the direction isn’t as clear as in weeks prior, but there is still a considerable bull case despite overarching global and economic tensions.
Tip of the week
Switching it up this week and opting for a tip instead of a quote. Let me know in the comments which you like more!
The Tip of the week regards the relationship between the profit of a trade and emotions associated with them. Many times I see traders setting % loss stops on their trades and this always befuddled me. Every stocks options trade differently. For example, a $1 move on TSLA 0.00%↑ weekly contracts can move 20-30%, but a $1 move on say, XOM 0.00%↑ will only move the contracts 5-10%. When it comes to setting stops, I always use the chart, as opposed to the contracts as we are trading PRICE, and simply using options as an access-pass to leverage. I find that if I remove the money aspect from the trades, they become substantially easier to stay in when things get rough and hold when they’re going well. The same applies for my longer term equity swings and holds.
Past Performance
Some extremely poor performance on the individual stocks I was watching last week. I try to bring high quality setups to the table, but there were no survivors this week. Looking forward to less economic events this week. I would like to reiterate that this is still not a swing traders market, and most of the best moves are completed intra-day as opposed to over the course of the week.
Charts
Lets go ahead and see what weve got for this next week. Lately I have been looking for relative strength stocks that are moving either sideways or slightly down with spy rolling over. This often turns into strong moves when the indexes go flat/up.
XM 0.00%↑ up on a strong ER report. Holding well and hasnt given anything back, this flag has a strong look to it and even showed some good RS on Friday.
CROX 0.00%↑ definitely needs more time to develop, but this strong uptrend and solid financial structure is something to note.
MNDY 0.00%↑ is a stock put on my watchlist by my friend Ethan, saying his company uses them and has all good things to say. After a strong report last week, and some of the mid tier tech stocks setting up as of late, this one makes the watchlist. Love these rounded stage-1 bases.
Gap fill plays have been semi lucrative lately as some stocks are breaking out of their bases and coming back to visit their gaps that they incurred on the way down. CRWD 0.00%↑ is setting up wonderfully to fill this gap to 136.27 above.
The riskiest looking chart this week, META 0.00%↑ has a strong bull flag building out, and after their latest ER, if this breaks up with some support from SPY 0.00%↑, I like it for a runner candidate.
That’s all for this week!
If you enjoyed, share with a friend or drop a like on the post! I am closing in on 200 subscribers and would love the support.
Also, be on the lookout for my mid week article this week, titled: “Mortgage-Mania!”, a deep dive analysis on the mortgage market from my perspective as a past mortgage analyst.
Tanner
META 👀