The Weekly Selection: 05/07/2023
Volume 037
Introduction
Hello Investors and readers alike,
Welcome back to another volume of The Weekly Selection, where I go through the market action over the last week and provide commentary while hoping to teach a couple lessons along the way. In addition to this I look forward into the upcoming week and share some of my favorite and most actionable stock setups I see.
Lets get into it with an analysis of the indexes
SPY 0.00%↑ has a nice looking weekly base, however the last 2 weeks printing outside candles is a pretty big indicator of indecision. For those who follow my trades, you’ve probably noticed the lack of them ive been placing lately. This market has been tough, and with a mixed earnings season, macro changes and continued pressures overseas with DXY I do not feel comfortable going heavy into a lot of positions.
QQQ 0.00%↑ a heavier tech weighted parallel to the $SPY 0.00%↑ ETF, looks slightly better. This is evidence that tech is leading what little break we have seen.
With this in mind, my charts will be again be fewer and longer based, as Im not a huge fan of trading mega cap tech.
Tip of the week
If youre not comfortable with what you’re looking at going into the week, do your best to block out excess noise and fomo generation (twitter). The market will be here next week, and the week after. Rushing into trades just for the sake of doing so has not historically ended well for me and my peers.
Past Performance
Only three stocks on the WL last week. XOM 0.00%↑, DXCM 0.00%↑ and $NVDA. XOM ended up fading with the rest of oil and gas, NVDA had a strong week and DXCM had a pretty much flat week with ER. I accidentally deleted my excel sheet, and it will return next week comparing to the index. Just eyeballing it, selection picks went about breakeven/slightly down to the SPY 0.00%↑ loss of -1%.
Charts
CP 0.00%↑ is up first. One of my fav setups this week brought to me by my friend David. Railroads are seemingly bulletproof in this economy, and this weekly setup is pure. Will look to long soon
Not something Id usually be looking at, but NET 0.00%↑ after ER is sitting right above a key level to bounce. I will likely look to add this on an inside day to get a run at the gap above.
ASML 0.00%↑ beginning to tighten up after ER and dividend. Would like to see this continue over the moving average stack.
Concluding notes
To be honest, there wasnt much that caught my eye this weekend. Im rather dissapointed in the broad action, with only a select few mega caps leading the charge. I will be hesitant to add this week.
Have a good one, and subscribe if you enjoyed!
Tanner