The Weekly Selection: 03/19/2023
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Introduction
Hello all,
Welcome back to another volume of my weekly newsletter, where I dive deep into the broad market, its ebbs and flows as well as some individual stocks I’m watching for the week ahead.
Without further adieu, lets get into the broad market analysis
SPY 0.00%↑ closed the week below all moving averages, with significant volume. The last time we saw this setup was Jan of 22’ and it was followed by an up week, and then continual downside for the next 5. I think seeing this type of price action so late in the bear run could mean 2 things. A temporary bottom being put in, or one last exhaustive effort to reclaim before significant downside. While I try to keep my bias’ out of the newsletter, I think its fair to note this looming price action, as well as how it may be affected by the current state of the banking industry. For those who have not heard, a few regional banks with less than ideal exposure to risky capital have been under a tremendous amount of scrutiny and are subsequently susceptible to fail. These stories are developing, and I encourage my readers to pay close attention.
Quote of the week
"There really is no intelligent reason to increase your trading size if your positions are showing losses”
- Mark Minervini
As the market continues its choppy action, its crucial to remember that more size does not mean easier. Trading a larger account while your small one is showing consistent losses is not going to help you make it back faster. I consistently see traders size up in the hopes of the greater ability to add to positions as easier, when in reality this has been known to cause the opposite, as the emotional burden from larger size negates the ability to perform.
Past Performance
Below is the performance for last weeks selection:
Beat the market pretty handily. Strong performance across the board!
Charts
Lets see what we’ve got coming up.
MELI 0.00%↑ up first. Put this one on the selection 2 weeks back, and it wasnt ready yet. In the event the market cooperates, I think an entry around these levels would be formidable
FTNT 0.00%↑, picked this one up from a follow on twitter. Strong base under some overhead. While it definitely has some supply to get through up in the mid 60s, I like this as a protected long. Break of the moving average stack to the downside gives a responsible entry.
I cannot get enough of AEHR 0.00%↑. I believe its my most featured stock on the selection, and here we are again. I think a run into the next ER is probable, and this daily setup is suggestive of such.
STM 0.00%↑ was featured last week, and the setup has not changed. Still looking fruitful, if not more now.
AXON 0.00%↑ tightening up above prev ATH. Liking the look here.
PANW 0.00%↑ doesnt have as long of a base as Id like, but it is something to note. It was reactive at its gap below, and I expect this to continue moving forward.
Thats all for this week!
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Tanner