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Stock vs. Setup

 

We’re doing things differently for Sunday’s prep list, as we’re running our scans before the market closes on Friday. We’re looking for setups with solid structure and momentum to add to our watchlist. We’ll show the most important things to incorporate into your weekend watchlist building – because structure is the name of the game in this market.

Many of us traders have gotten into the habit of having a bias for our favorite stocks. Think about stocks in big technology and semiconductors like FB, AAPL, TSLA, NFLX, NVDA, and AMD. These stocks have served us well over the last few years, but it’s important to keep our focus on what is setting up best in the current market.

The major reason for this is if you look at the monthly chart of the QQQ, it has spent the last two years firing a monthly squeeze to the upside. This becomes our biggest source of non-stop momentum, so when we do see this squeeze to the upside we want to focus on those big technology stocks that have wind on their backs.

However, in the current market where the tech winds have died down we’re more focused on structure.

The stock doesn’t matter, the setup does.

So let’s fire up the scans together to find good setups that fit the bill.

Stay Focused!