The Weekly Selection: 05/27/2024
Vol. 089: The Show Goes On
Introduction
Investors,
Welcome to another iteration of The Weekly Selection. The purpose of this write up is to bring an all inclusive look at both the broad and individual stock market, how I view it, and what I expect for the next week.
In addition to this, provided within are a few goodies for your enjoyment, like the portfolio tracker for the stocks selected, and a parabolic trend analysis from a stock in the past.
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Indexes
SPY 0.00%↑ up first. Looking back on the week, many people assume this red highlighted candle is suggestive of pre pullback price action. However, if we compare to the last time this happened back in early April, a lack of volume is noticeable. With this in mind, as well as supportive structure around $524, I think continuation is possible.
Bitcoin, while not an index, acts as one for the crypto market. Over the last few weeks, I have been positioning into various crypto exposures, from miners, to proxy exposure via MSTR 0.00%↑. I like the way this looks, and Ethereum has already begun its breakout to support this thesis.
GLD 0.00%↑ quick look, the structure has been violated to an extent, and I think now the likelihood is a low probability VCP for continuation. Really not a fan of the action last week.
Parabolic Trend Analysis
Usually I have a lot of additional notes to add to the parabolic trend analysis, but this time its all annotated right on the chart. Not every parabolic analysis comes off of one catalyst. Sometimes it is the culmination of many small catalysts that eventually build and build until a wild blow off. This is possible in any tradeable market.
Past Performance
This week was never cut out to be a blowout. NVDA 0.00%↑ earnings were an important directional factor, and they delivered while much else of the market experienced some turbulence. LLY 0.00%↑ was a great standout, with XOM 0.00%↑ and the rest of oil taking a dive.
Charts
I don’t have many specific charts for this week or the portfolio. I think much of what I have is either extended or already in the working stages. Much of what set up in early may has pushed past its entry areas. Here’s some notable ideas this week, regardless:
DECK 0.00%↑ clears $1000 on a pretty sizeable beat on earnings. For those who dont know, DECK 0.00%↑ owns HOKA, which has been a large contributor to growth in the last few years.
I think there’s an opportunity in both directions for SMCI 0.00%↑. The minimal reaction to NVDA ER, as well as pin under the 50sma leaves this susceptible to a potential downswing. That being said, If the 50 is reclaimed on volume and the engulfing candle high is taken out, there is some oops reversal possibility
WIX 0.00%↑ is an episodic pivot I traded last week after their report. I like this high tight flag setup, although it may need another day.
FSLR 0.00%↑ blasted through local highs this week. The entire solar theme managed to make similar moves, suggesting a rotation. FSLR 0.00%↑ is the leader here, and I will look to work in a position on a pullback.
SCCO 0.00%↑ copper pulls back to its DTL.
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