As we give thanks, can the bulls break out to new highs again this week?

Q3Trading.com

Weekly Market Focus Report

"If a fellow isn’t thankful for what he’s got, he isn’t likely to be thankful for what he’s going to get."

Frank Monroe Clark, former U.S. congressman (December 24, 1915 – June 17, 2003)

Welcome, to all our current and recent subscribers! I am glad you are here, and want to thank you for joining me on my trading journey. I have been a student of the markets through good and bad times participating as an active self directed trader in the markets since spring of 2002.

I hope that you will find much value, and enjoy reading the "Weekly Market Focus" report.

My goal is to go easy on the hype, by providing fresh content demonstrating "where the market is now" using broad market volatility trend analysis, coupled with market insight based upon my years of market research and technical analysis, in hopes you too may find the edge you are seeking in finding success with your trading endeavors

I got into doing my own trading, after turning over a sum of money into an account with a recommended full service broker in the late 90's, just at about the same time our first son was born, while reading from a publication to trade a specific strategy. It all sounded good to me, like it would be a good way to grow the capital.

After some time had passed, my account was losing value, while the broker was generating a nice sum of money for himself in sizable commissions. I thought to myself, the only one making out in this deal is the broker. Something had to change.

One night, while up very late, I saw a commercial to attend a local seminar in my area to become a "wize" trader. All I would need to do is follow the green and red signals. Buy on green, sell on red. Sounds easy enough. After attending that webinar, and forking over another what seemed to me to be a sizable sum of money, I was determined from that day forward to become a successful trader of the markets.

Does this sound familiar?

In the last 18+ years, a lot has changed, while much still remains the same.

WizeTrade doesn't appear to be in business any longer, but I have to say, their 2 day retreats in Dallas back in the early 2000's were something to remember.

What a show they put on, filled with everything from Zig Ziglar and his most motivating presentation, to Dallas Cowboy cheerleaders, doing kicks in their high boots with short shorts all while throwing out bright lime green miniature footballs with WizeTrade insignia imprinted on them to all those in attendance.

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 several top stocks that I am trading some others to have on bullish watch list?

Let's get going!

Weekly Market Sentiment:

Bulls out pace the bears last week as price action ends up on a week over week basis.

The broad markets gained ground slightly from its 3566.82 Monday open to a 3638.35 Friday close for slight 71.53 point increase on the week.

Very similar to the last several weeks, going back to the November 9th gap higher, we see the markets open the week then mostly go sideways for the following several days into Thanksgiving holiday.

Market Cycle Volatility Trend:

As of November 17th

Green / Up

November 27th, 2020 Market Cycle Volatility Trend

(click image above to enlarge)

When looking at the Market Cycle Volatility Trend above, the chart shows us when the financial markets turned to a green lower volatility up trend on November 17th, 2020 when the market cycle volatility trend from a prior yellow up condition to green, a lower volatility up trend.

To summarize, we have an up trending / lower volatile market currently relative to its past, continuing to melt sideways to higher at or near all time highs.

We have been in a 150 point or less sideways trading range going on now for 14 straight trading days. What might this be telling us?

The question now becomes:

Where might the markets go from here?

The broad markets are continuing to drift sideways to up as they melt ever so higher into new found all time highs.

Volatility continues to be coming more out of the markets as we can see price action of our volatility trend green for over more than 5 trading days now.

As I stated reiterated in last week Market Focus Report, "With the sideways / consolidation move we had last week, it wouldn't surprise me if the markets were to break out of its current trading range to move higher from here in the coming week ahead."

Nothing has changed with this bias, so again, stay tuned to see if the bulls can keep control of the markets to continue to push even higher. If this is the case, the 50 period moving average will continue to curl up, as we it doing now colored in blue, until it is once again is tested at some point in the future.

(click image to enlarge)

In my own trading, I am using trading signals from custom built strategies that I create. For stocks, where I trade shares, and / or options (depending on the account), to take a trade on a position, my goal is to always utilize prudent money management with a focus on the following scenario:

1. where is the the broad market volatility trend - up, down, or transitioning

2. the stocks I am considering must be both fundamentally and technically strong, with ample volume, in an uptrend.

3. diversification

(click image to enlarge)

With these three objectives, no matter what the criteria to be using, there is never a trade that is a guarantee sure winner from the start. So no matter what a chart looks like, or the best analysis, to succeed, first have to realize that on any one position, there is a real possibility that either the market may now start to transition to the start of a potential down trend, and / or the trade may simply not work out from the start.

PLUG Trade Alert on 11/4/2020

(click image to enlarge)

I currently have a bullish position on PLUG that I have been working for the past several weeks as it continues to drift higher.

TSM Trade Alert on 11/27/2020

(click image to enlarge)

On Friday, I put a bullish position on TSM. Both of these stocks are in an uptrend, with strong volume, and have recently issued long trade signal entries.

GM Trade Alert on 11/17/2020

(click image to enlarge)

Several other stocks that have also recently issued long trade signal entries (in the last 5 - 10 days) are GM, and NVAX.

NVAX Trade Alert on 11/24/2020

(click image to enlarge)

From these four stocks, TSM and NVAX are two that have most recently issued trade alerts, on 11/27 and 11/24 respectively.

NVAX shot up on Friday achieving a multiple R gain. (R refers to the amount of risk on a trade where 1R is an equal amount of reward to risk). TSM trade is just getting started as of Friday.

Will these stocks move higher from here?

When looking at a chart, GM and PLUG have both been been drifting higher since issuing bullish trade alerts on 11/4 and 11/17 respectively.

In trading, you want to always be building your watch list for potential trading candidates, and only taking bullish trades when the markets dictate its appropriate in so doing.

Here is my current top ten watch list of top stocks:

FCX
FUTU
GM
JD
NIO
NVAX
PINS
PLUG
SNAP
TSM

Nov 30, 2020