with the market cycle trend up, where is the top line resistance?

Q3Trading.com

Weekly Market Focus Report

I hope you had a nice weekend. Today we will be discussing the following topics:

What is the current Market Cycle Trend?
Where might the markets go from here?
Final thoughts for this weeks trading ideas?

Let's get going!

Market Cycle Trend:

Up as of September 30th

Market Cycle Trend (click image above to enlarge)

Bulls out pace the bears last week as price action ends up on a week over week basis as the broad markets gain ground from its 3367.27 Monday open to a 3477.14 Friday close for 109.87 point increase on the week more than 7 times the increase from the prior week.

Last week, the market heated up, starting off Monday where we saw the broad markets gap up to start the session from its prior close, with mostly higher action to end the week much higher by Friday with Tuesday being the only one down day last week where the close was lower than the open.

From the chart above, we can see from the market cycle signal bars and up arrow put in on September 30th, has signaled a lower volatile up trend market is where we are now relative to the past.

Will we continue to rally from here?

The question now becomes, where might the markets go from here?

What can the intraday data of the broad markets now tell us?

And what might be a potential game plan for the coming week?

Intraday broad market momentum as of Fridays market close

Intraday Market Cycle Trend as of October 9th, 2020

As you can see from the chart above, underneath the hood, on an intraday basis, as self directed traders, we want to take note as to how the market is performing to base our decisions accordingly.

According to our intraday chart, the markets are moving increasingly higher, based upon technical analysis that we have looking at the more recent weeks.

If we continue to go higher from here, note the upside resistance between 3550 - 3600 area on SPX.

Trade Ideas for This Week

What are my final thoughts, and how I am planning to work the markets in the coming week ahead?

Keeping in line with the current uptrend, I had some really nice trades last week. Not all worked out to be winners, but here were the issues I had traded or am currently holding across one or more accounts:

ABR, NIO, PLUG, SNAP, AUY, AMD, SPY, TWLO, NFLX, PRPL, TSLA, PPG, DDOG, SPCE, FSLY, JKS

Over the weekend I took a deep dive into my watch list, cleaning it out to include only those names of companies which are the strongest growth stocks containing those characteristics that I like to have for the companies I trade (minimal volume, etc...), weeding out the weaker, less attractive issues.

This week, I will be looking for additional long trades assuming we can continue to rally from here.

Thanks for reading...

Today, I wrote about the state of the markets, including the current market cycle trend using my proprietary trading tools, where the current market cycle trend is, what to look for in the week ahead, and how might we play the markets for next weeks trading.

Questions, comments, corrections, or suggestions? Send me an email, I would love hearing from you!

Until next time ... Stay safe, and happy trading!

Disclaimer: I either recently had positions in these names, currently have positions in these names, or may be taking positions in any of the proceeding names within the coming days or weeks ahead.

Stocks, Options, and Futures have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to buy or sell stocks, options, and, or futures.

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology has the benefit of hindsight, and is not necessarily indicative of future results.