Mid-Week Routine – May 12, 2021

SUFO – Stocks Up From Open
SDFO – Stocks Down From Open
U/D – Up/Down
RV – Relative Volume
HRV – High Relative Volume
LRV – Low Relative Volume
EOD – End of Day
PLG – Potential Leadership Groups
DMA – Daily Moving Average
KMA – Key Moving Average

Leadership Day – Indexes finish up on the session with leadership groups leading from the open.
Rotation Day – Indexes finish up on the session with laggards leading from the open.
Distribution Day – Indexes finish down on the session on increasing volume vs prior day. Track index volume: https://www.traderlion.com/stock-market-exchange-volume/

Reviewing Current Positions

Weakest to Strongest Positions: Current Positioning on Close is Cash.

2. Market Review

SP500Nasdaq
Market ConditionsConfirmed UptrendConfirmed Uptrend
Distribution Count65
Reclaim10DMA10DMA


What Would Webby Do (WWWD):

Date: Wednesday, May 12, 2021

Overview: Market action incredibly poor from open to close. Best position is cash and has been since yesterday’s inability to create space from TL Daily Plan Bolded Pivot. Best to be making large RS lists and tracking the action, sitting on hands until we get evidence that stacks towards the upside.

Facts: -2.67%, 10% closing range on decreasing and below average volume.

Good: In market conditions like this, relative strength becomes apparent and very easy to spot. Additionally, systems are working as we have been gradually moved out of positions before any of the market’s downside action came into full force. Our edges are apparent even if we aren’t ‘making’ money, we are ‘keeping’ money.

Bad: Close below TL Bolded Pivot $4155. This now means the indexes are in a downtrend. COMPQ/IWM/IWO all far below their 10/21DMAs. Yesterday’s rally attempt gets smacked down. COMPQ/IWO well below their 50DMAs with IWO looking like it could test its 200DMA within the next couple of sessions if weakness persists. Charts are now completely busted, even RS names shaping up are fighting against the stream and odds of success are very low. SPX on its way to testing its 50DMA if weakness persists.

Candle: Large size negative body, small upper wick with small lower tail.

Expectation: Sideways/Lower

Webby’s Really Simple Indicator (RSI): 0.00%

TL Version 5122021


Webby RSI – Low vs 21day EMA expressed as a percent. NOT the regular RSI that everyone hears about.

3. Sector, Group, Industry Review

1 Week Leading Performance-Momentum Groups: Oilers, Energy, Miners, Nasdaq Biotech, Airlines
1 Week Lagging Performance-Momentum Groups: Home Construction, IBD50, Retail, Casinos, Consumer Discretionary

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4 Week Leading Performance-Momentum Groups: Oilers, Energy, Materials, Financials, Health Care
4 Week Lagging Performance-Momentum Groups: Solar, Social Media, IBD50, Semiconductors, China Internet

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Top 20 Industry Groups From MarketSmith

Top Industry Groups: Oil&Gas, Transportation, Retail, Metals/Steel

Screen Shot 2021 05 12 at 8.46.07 PM

4. Key Watchlist Review

Brackets () show levels of interest on the upside/downside. These are key data-based levels to keep track of.

Hight Tight Flag Candidates (HTF) Watchlist

Standouts: BCRX CELC RCON STKS* TYHT UNFI ZIM

IPO Watchlist

Standouts: AGL AOUT* MRVI PATH* RBLX* SEMR* ZIM

Gappers Watchlist

Standouts: AVID** BGFV LQDT* UTHR*

Handwritten Notes:

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5. Top 10 Report Plan

SymbolBaselineMagnetT10 PivotPink LineMoneyFlowThought Process
No T10 Plan Below Bolded Pivot. Stocks in bold in the Symbols column are of interest and will be on my focus list.
TL Acronyms | TraderLion

6. Swing Trade Plans (STPs)

None in this choppy market.

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