Friday marks the last day before the start of a new month and quarter in the market. This is very important for Wall Street, as we’ve discussed the rebalancing and rotation happening at the end of the quarter. 

After a monster push, the market is seeing red days to end the month. The conversation now focuses on… Is the market extended?

Technically, yes, but that doesn’t necessarily mean the market will continue to head lower.

The market is starting to trend down, as the S&P 500 (/ES) broke below $4,586 and is now heading toward the next key zone at $4,554.

Pay attention to how “big money” reacts. Will these players continue to sell things off in the new quarter or start pushing the market back up again?

Be mindful of volatility, rotation, and distribution that could happen at the start of a new quarter. 

In the video above, we’ll walk through the technicals on our charts, create a road map for Q2, and lay out setups on PANW and TSLA.

Stay Focused!

 

The market is continuing to explode above the Ichimoku Cloud. Let’s discuss what matters in extreme volatility and review our focused list for the week. 

There are multiple monthly calendar events to review as we wrap up the end of the month and the first quarter. We have the ADP Employment report on Wednesday morning, followed by the Nonfarm Payroll job report on Friday morning. Both of these job reports could be catalysts that move what we call the “mamba” market.

And, the S&P 500 (/ES) finally ripped through the daily Ichimoku Cloud. 

As long as the market is above the daily Cloud, we want to play this market to the upside. The /ES is back above all key moving averages, pushed out of the daily and weekly Ichimoku Cloud points, and retreated to the weekly mean.

Until the /ES arrives at our next major key range from $4,586 to $4,600, anything is possible. The market could completely roll over and revert or keep pushing higher, so be sure to avoid having a strong bias one way or another.

Here is our focused list:

SNOW — Expect price to move sideways or higher based on rebalancing and funds driving SNOW up to liquidity levels. SNOW is printing a 4-hour squeeze, so look for dip buys. We’ll watch for it to fill the gap from $240 to $250.

SHOP — Has shot higher due to rebalancing toward liquidity. Look for a bounce off the range from the Friday low at $666 and the daily mean at $675 up to point of control (POC) at $703.

Stay Focused!

 

 

It’s back to the basics. We’re focusing on the “best” trends the market has to offer.

At the moment, the sectors showing trend, structure, and momentum are the energy sector (XLE), healthcare sector (XLV), and fertilizer stocks.

We’re seeing buy signals, positively stacked exponential moving averages (EMAs), and green 10x bars across the board.

Now, the only thing missing for an ideal entry is a pullback to the daily 21 EMA.

In today’s watchlist video, we’ll discuss our favorite setups in each of these sectors along with where we’d like to set chart alerts to enter positions this week.

Stay Focused!

 

Another wild week is in the books for the markets. The indexes and leading names continued their grind higher in what has been one of the “crazier” short squeezes we’ve seen in a while.

Next week we have quarterly-expiration in the options market on March 31, which likely means the market could trade sideways into Friday. While we patiently wait for more clarity in the indexes, we’ll be focusing on the best trends the markets have to offer and taking good entries as they’re offered.

What are the “best of the best” trends in the market at the moment? 

Based on our criteria, energy stocks, healthcare stocks, and fertilizer stocks all have the attractive combination of trend, structure, and bullish momentum. As good as these trends look, it’s important to not chase an entry.

A dip and a better entry is always around the corner, and that better entry is always worth the wait.

Below are a handful of our favorite setups in these leading sectors:

XLE: Energy Sector

EOG

DVN

UNG

 

 

 

XLV: Healthcare Sector

JNJ

CVS

 

 

Fertilizer stocks:

MOS

CLF

 

 

Notice a theme here?

These setups are all in uptrends, have positive histograms, and positively stacked exponential moving average (EMA) points. When a setup fits this criteria, our only job is to wait for a dip and take action when the ideal entry is offered.

We’re going into the weekend holding positions in DVN, CVS, and a few others that we’ll be covering in the Sunday watchlist video. For the stocks and sectors that don’t have these bullish criteria, we’ll ignore those until they begin to rebuild their charts.

Stay Focused!

 

 

The market is at key inflection points which means plenty of opportunity for us traders. Once price reaches major support or resistance levels, anything is possible.

We must avoid having any major bias in one direction or another.

We’re continuing our conversation on the daily Ichimoku Cloud now that the S&P 500 (/ES) is trading near the flat line level at $4,510. This will be the Cloud top level for the rest of the month, with another flat line level to follow in April. 

This is a critical zone for the overall market:

Now that the /ES broke through this range, we could see a push to $4,600 at the top of key ranges.

The /ES could also fail, retreat to the Cloud top, and roll over.

While the /ES consolidates through these key levels, we are also watching the 4-hour squeeze develop. This is starting to give the market structure. As the squeeze gets tighter and tighter, it could eventually either pop out of the Ichimoku Cloud or hit resistance and reverse.

The market could continue to be range-bound, so play off the key levels, watch the squeeze develop, and be ready for when the next big move occurs. 

In the video above, we’ll define the key levels on the major indexes and discuss our two favorite setups on PANQ, the cyber security stock, and TSLA now that it is breaking through huge zones. 

Stay Focused!