The NASDAQ had a great week after reclaiming the intraday trends and making new highs. I wanted to share this chart that goes through the simple analysis I was doing during this week --
NASDAQ 65m chart. In my opinion it's a great learning opportunity for intraday trend analysis. Looking back we can see that gap down from Friday (4/17) was erased Monday (4/20) and Tuesday (4/21) as price attempted to reclaim the 65m trend with an equal high.
At that point I considered that lower low from Friday (4/17) to be a shakeout and buyers needed a higher low to work with along the rising 65m trend to regain control. That is what we saw before the large move higher (4/22). To keep this in context, all of this was happening above YTD break even, above daily support areas, and with a rising 50 day average. To take it one step further, in a weekly bull market. While this was happening there were some great looking long setups to trade and that's what I was doing all week. All of this was tweeted out while it was happening.
Next week I'll be watching the 65m trend to guide price higher and the 15m trend for how fast we are accelerating. In other words, if we keep moving this quickly I'll be using the 15m trend. If we stay healthy the 65m trend is likely to hold. We gapped up above round number $110, which is also the gap low so a strong market should hold above that gap low/$110. Whether we keep going on a 15m trend or consolidate to let the 65m catch up, I don't know. This is just me measuring the market. The previous intraday low is still the one I discussed from 4/22 so buyers have room if they need it.
The watch list is still pretty large as opportunity is coming from a lot of different places right now. I'm still seeing a two sided market as everyday the watchlist is half green, half red so I am aware of that. I'm also aware that not all of these are in strong daily up trends, but that is just part of what's working right now on my time frame which is 1-5 days still for the most part. For example three big winners from last week for me were TSLA, IBM and MU.. none of which are in strong daily up trends. They do have intraday trends though and that's the only reason I'm trading in stocks like these. At the same time AAPL (after stopping me out short and reversing the signal), FSLR, TASR, and PCLN are all in strong up trends and doing well. Keep in mind the earnings dates, and as always thanks for reading.
-Michael
Watch list analysis can be found on my stocktwits and twitter streams underneath the links to this post.
