with all time highs last week, where is the next resistance area?

Q3Trading.com

Weekly Market Focus Report

~ January 25th, 2021 ~

Today we will be discussing the following topics:

What is the most recent Weekly Market Sentiment?
What might our Market Cycle Volatility Trend be telling us?
The question now becomes: Where might the markets go from here?
What are my Top Trading Tips, including the most recent and updated trading signals?

Let's Go!

"You may be disappointed if you fail, but you are doomed if you don’t try."

Beverly Sills, opera singer

Weekly Market Sentiment:

Bulls out pace the bears last week, as the markets charged higher with price action ending up on the week by the close from its Monday open.

The broad markets gained ground from its 3781.88 Monday open to a 3841.47 Friday close, for a 59.59 point increase on the week.

Market Cycle Volatility Trend:

As of January 19th

Green / Lower Volatility

Market Cycle Volatility Trend Week Ending Friday, January 22th, 2021

Click Image Above For Larger View

When looking at the Market Cycle Volatility Trend above, the chart shows us when the financial markets turned recently to a green / lower volatility state last Tuesday, January 19th, when our Market Cycle Volatility Trend went from a prior yellow / transitioning condition to now a green, which means the markets are now in a lower volatility environment relative to recent past.

To summarize, we are currently in a lower volatile up trend relative to its recent past. What might this be telling us, and what might be a game plan for the upcoming week?

The question now becomes:

Where might the markets go from here?

Last week I wrote, "By Friday we had breached first level support."

After hitting that support level last Friday, when the markets open Tuesday, they gapped higher, and continued to run up for the rest of the day. Another gap higher, larger yet, occurred on Wednesday, with even more gains to be had. By Thursday, and Friday, we saw some consolidation.

We are currently trading just above first level support of 3826. For the week coming, we may continue to consolidate from here, or look for a move higher if we can once again push through the current high put in last week of 3861.45. Top level resistance is at 3923.

Top Trading Tips

To trade in the markets, whether it be stocks or options, the goal is to always utilize prudent money management with a focus on the following top three trading tips:

what is the current broad market volatility trend - up, down, or transitioning
for the stocks to be considering putting on a position, to put the edge in your favor, you want to have both fundamentally and technically strong, with ample volume, and in an uptrend.
diversification across multiple positions with equal risk on each spreads out the risk where any one position might go against you

With these three objectives, no matter what the criteria to be using, it is important to note that there is never a trade that is a guarantee sure winner from the start.

This is why trade risk management, having a clear, simple, and easy to understand trading plan to follow, with ample diversification of trades give you the greatest edge for finding long term trading success in the options and stocks markets.

Q4 2020 Top Trading Signals

NET: 89.94 point realized gain*

Click here for full details at our web site.

~~ Q1 2021 ~ Trade Signal Updates ~~

Trade Signals Now Closed / Flat*

AAPL - close / flat as of 1/4 price 130.60, prior long signal 12/28 price 133.99 (3.39 point loss*)

ATVI - close / flat as of 1/4 89.75, prior long signal 12/8 price 82.48 7.27 point gain*

FLGT - close / flat as of 1/8 59.42, prior long signal 12/30 price 52.34, 7.08 point gain*

FTCH - close / flat as of 1/4 59.99, prior long signal 12/31 price 64.41 (4.42 point loss*)

GRBK - close / flat as of 1/4 22.20, prior long signal 12/28 price 24.66 (2.46 point loss*)

JD - close / flat as of 1/6 88.86, prior long signal 12/24 price 83.39 5.47 point gain*

MNST - close / flat as of 1/4, 90.14, prior long signal 12/29 price 91.20 (1.06 point loss*)

TPX - close / flat as of 1/4, 26.46, prior long signal 12/8 price 24.94 1.52 point gain*

VERU - close / flat as of 1/5 7.82, prior long signal 12/24 price 9.15 (1.33 point loss*)

AVTR - close / flat as of 1/15 28.44, prior long signal 12/1 price 27.60 .84 point gain*

**LOGI - close / flat as of 1/19 99.61, prior long signal 12/8 price 88.00 11.61 point gain*

**MS - close / flat as of 1/22 72.55, prior long signal 1/4 price 68.33 4.22 point gain*

**CDNA - close / flat as of 1/22 85.43, prior long signal 1/20 price 93.36 (7.93 point loss*)

NET: 17.40 point realized gain*

*Assuming trading signal is taken at price of entry or better, without consideration for trading fees, or slippage (frictional costs) and commissions.

** newly closed signal(s) published this week.

~~ Trade Signal Updates ~~

Recent or New Trade Signals Now Open*

CELH - open long signal 1/4 price 52.67, last closing price 64.68, 12.01 point gain*

CREE - open long signal 12/18 price 96.66, last closing price 114.37, 17.71 point gain*

DQ - open long signal 1/4 price 59.77, last closing price 96.77, 37 point gain*

GRWG - open long signal 1/4 price 40.81, last closing price 49.84, 9.03 point gain*

MRVL - open long signal 12/31 price 47.45, last closing price 52.62, 5.17 point gain*

NIO - open long signal 12/31 price 48.46, last closing price 61.95, 13.49 point gain*

TSM - open long signal 11/27 price 98.54, last closing price 129.14, 30.60 point gain*

**ALLY - open long signal 1/20 price 41.46, last closing price 40.61 (.85 point loss*)

**AMAT - open long signal 1/20 price 110.11, last closing price 106.33 (3.78 point loss*)

**AVTR - open long signal 1/21 price 30.41, last closing price 30.52, .11 point gain*

**BEKE - open long signal 1/21 price 70.12, last closing price 71.45,