FREE MARKET UPDATE #184

Free weekly stock market education service with 3 stock ideas.

Disclaimer: The content is for educational purpose only. No investment advice. Please read the full disclaimer.

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Hi !

not much movement in the indices, but in some stocks! Especially a few small and mid cap names on my watchlist moved higher. Good to see! I prepare all Premium Members to look at the right names before they move higher.

Of course we are not in an established stock market uptrend yet. Nobody knows if we will move higher here or fall back into the correction. Time will tell and it's our job to observe and assess the market every day. Don't stop doing your homework!

Here is the content of the weekly free newsletter:

Comment on the current market situation
Stocks I am watching at the moment: $ON, $AMPH, $SBLK.
Trading tips: Look for great bases and you will find great stocks

Thank you and good trading,
Julian

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🚨 MARKET UPDATE Premium: The 💎 membership service with access to my watchlist, live market and stocks commentary and weekly in-depth analysis video.

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MARKET CONDITIONS

In the videos in the Market Update Premium community I said: As long as the indices stay above the EMA 21, there is a good chance that we will move higher. Next week will be exciting: Moving higher from the EMA 21 or down?

The NASDAQ is the weakest of the indices. The Russell 2000, which is a broader index, is stronger and that is good to see! If the Russell 2000 is strong, a lot of stocks can move higher. Of course we are not in a bull market here (only 28% of all stocks are above the MA 200), but my market indicators are improving!

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NASDAQ composite (daily): EMA 21 is still the major support and resistance. If the NASAQ holds the EMA 21, a rally is possible. Otherwise we could see a quick retest of the lows. Be prepared for both scenarios.

📈 Do you want to see the full analysis? I post a 1 hour in-depth analysis video (indices, commodities, stocks, mindset & psychology) every week in the MU Premium member service. You can try it out 30 days without any risk!

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3 LEADING STOCKS

This week I have 45 stocks on my watchlist, 8 more as last week. I added a lot of stocks with good bases to the watchlist and will discuss them in the Weekend Report Video for members! 📈 You can get full access to the watchlist in the MU Premium member service. You can try it out 30 days without any risk!

$ON: A few first semiconductor stocks came up in my screeners. $ON is one of the strongest. Good growth and EPS estimates, but it needs more time to finish the base.

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$AMPH: Medical stock with great fundamentals and a strong trend. Compare it with all the broken down stocks in the medical sector. This one is holding up good.

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$SBLK: Shipping stocks were one of the strongest sector, but now they are becoming weaker. The volatility is a first sign! Not sure if they can move higher. $SBLK is only one of a couple of stocks I am monitoring closely.

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TRADING TIPS

Look for great bases and you will find great stocks

Interpreting charts needs experience. It's an art which is rules base. I found no software or automatization which is really helpful to interpret charts. If you want to use charts, you have to learn how to use them and how to differentiate the good from the bad chart pictures.

A great base always have similar characteristics. I have dozens of videos + 300 pages charts book in the GROWTH TRADERS TOOLBOX course. I recommend to go through them a lot of time to train your eyes.

Here are some characteristics of a great base:

1. Low volatility. A sound base is clearly going sideways. There are not much failed breakouts, gaps or erratic price behavior.

2. Tight. A base which is loose often leads to failed breakouts. What is loose? There is no clear rules for that. But if you see wild swing inside a base with a lot of turnarounds, it's often a loose base. Look for harmonic swings. A base depth of 15-20% is ideal, but it can be 30% or 40% if you have a small cap stock in a bear market.

3. Not too long and not too short. A 3 weeks base it not enough. A 2 years base if too long. If a stock has to go 2 years sideways to attract a lot of capital, something is wrong. Maybe it's underperforming the stock market and what looks like a base is more like a top.

4. Relative strength. Even in a base the stock should outperform the stock market. Most leaders develop a base if the stock market is in a correction. Look at the relative strength line.

5. Accumulation. In a base you should see accumulation. High volume on up days is a good sign. Even if the volume is drying up, you should see stronger volume on up days.

Here is an example from a stock I have a position in and introduced in the MARKET UPDATE community: $SWIR.

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