TLDR: The Qs are in a power trend holding the 10-day after new highs, so we lean aggressive. Eleven deep dives this week, mostly managing what we already own with a handful of fresh watches.
Welcome back to the Weekly Trading Plan. Here’s what we’re covering:
Market Pulse. Power trend confirmation and what the 10-day hold means for sizing.
AI hardware and semiconductors.
Biotech and healthcare.
Software and platforms.
IPOs and other.
Honorable Mentions. A longer list of names worth watching.
Closing Thought. Market first, then the stocks.
How we trade these names. This is not financial advice. Be sure to do your own research. Managing risk should always be your priority, and that means never blindly buying into names you see on a newsletter. Build your system and follow your rules.
Market Pulse
Last week the Qs broke out into new highs and then pulled back to test the 10-day. Friday closed with our low above the 10-day on an up day. Essentially pretty normal. This looks like it could trend higher on the 10-day, which would be extremely positive for growth stocks on the long side.
In strong uptrends the holy grail is holding the 21-day. In the strongest parts the market holds its 10-day on the advance. Really positive to see that. We are leaning aggressive. We are in a power trend: low above the 21-day, the 21-day over the 50-day for more than five days, and the 50-day ascending.
The bull case is breadth catching up to the Qs and the leaders. The SPY is more indicative of that than the Nasdaq. If the SPY catches new highs and trends higher, that is a really good signal. My focus right now is managing these positions and looking for chances to increase exposure through the index ETFs, a leveraged SPY vehicle.
