TLDR: The Nasdaq held the September 21 character-change lows and is three days from a power trend, which is when we get more aggressive. Fifteen deep dives plus honorable mentions, with Micron earnings on Wednesday as the main risk.
Welcome back to the Weekly Trading Plan. Here’s what we’re covering:
Market Pulse. Character change held. Power trend is on deck.
Crypto.
Biotech and healthcare.
Semiconductors and memory.
Software, space, energy, and the mags.
Honorable Mentions. A longer list of names worth watching.
Closing Thought. Set the rebuy the same way you set the stop.
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 was an inflection point in the market. The Nasdaq went through the resistance we have been watching since early June. That is a character change.
The character-change day was Monday, September 21. During the week the market tested those lows, put in an upside reversal, and is now set up to break into new highs. All of the moving averages are ascending and in order.
We have seven days with the low above the 21-day. Three more days above that average and the Nasdaq is in a power trend. This is power trend week, unless the market completely collapses.
A power trend changes out posture. Defensive or moderately offensive becomes very offensive. Grow mode. For me that opens margin and more aggressive scenarios. We still have to see the follow-through.
The boogeyman is breadth and rising yields. Plenty of wall of worry. I am not trading the rates debate. Price action already has all of that in it.
Leaders are performing. We stalk pullbacks this week and stay careful with the memory names into Wednesday earnings.
