Broad Market Outlook
What a way to end the first week of the new trading year, after an extremely slow peel of the band aid in 2022, 2023 feels as if the wounds of the year prior are starting to heal. Members like Jun with back to back $100,000 days and the rest of the Alpha members putting up some serious numbers such as Django making over $38,000 or Alec putting up over $14,000 while adding a new pup to his family, honstly not sure which is better (obviously the pup).
There was one noticeable correlation between those three members, they all have Comma Day watches, I didn't tell anyone this but I had a witch bless all the watches on Halloween. Seems those blessing are starting to kick in and I am 100% serious about the witch thing.
Without the witch craft, the market still had an amazing day on Friday where it seemed like anywhere capital was put to work, you were rewarded. It seems like into the week ahead or at least for tommorow, if you were caught flat footed on Friday, this will not be the day to try to chase the moves higher if we can continuation in the new week.
Most of the action last year when we would have a day like Friday, where greed is at highs, we often saw selling or fear come back into play the following day(s).
It still seems to be a single and doubles market, buying through the area's we are focusing on, sticking with PLOD or LOD stops, and taking those winners and ringing the register quickly instead of trying to hold out for more seems to still be the move.
The first week of the new year is in the books, as always lets continue to scan for charts, discuss ideas and share the wealth in the group.
Sensitive - sectors that have moderate correlations to overall market conditions.
Cyclical - sectors that are more sensitive overall market conditions.
For all last years Tax Experts members, check your inbox for your private folder to start uploading your tax documents.
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Defensive - sectors that tend to outperforming during sub par market conditions.
Big Picture Set Up
AMZN stock wise has had a rough year as most mega cap tech names have also be apart of. Yet you and I still shop on Amazon the same as we did when the stock was at highs as much as we do, if not more when its at lows. The overall narrative of these mega cap names are that they are dead forever, just like when they were at highs, they would continue higher for ever. Down here risk reward wise seem a great area to pick up stock, yet we want to wait till after earnings, these leaders who get beaten down take a long time to recover and rarely do you ever want to join these parties early. Even if they smoke $80 to the downside on earnings for insert the excuse that the street will come up with, that could be the last final push lower it needs before it can rebuilt.
CORT has had a rough past few months as we were watching it for a breakout through $30 that didnt happen, there is a bear flag forming down here, for now looking to buy up through $21, yet will keep it tight if there is not a strong day one move out of the cheaper name.
CTVA closed great on Friday as it pushed out of the mini base/bear flag it had been forming, for now leaving the stop vs the prior low of day at $58 and will see if we can hold onto this name as it climbs back up towards the $64 sneaky buy back area.
ELF had a nice breakout on Friday and for now it seems a stop vs the low of day ($56) or the prior low of day ($55) makes sense, with a short term target of $62 in the time based on the size of the flag.
REGN had a nice day on Friday, as most names did, for now keeping the stop vs the prior low of day with the short term target aiming for the retest of all time highs.
Great day one action out of TJX sending it into Blue Sky's, the short term measured move should sent it to $88 in time, but for now keeping the stopo breakeven as we know with this new high breaks, either they go quick or fizzle out and pull back.
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