~ Market Focus Report ~ Monday, September 4th, 2023 ~ Labor Day Special Edition ~

{!firstname_fix}, with the bull market back, how long can it last?

~ Market Focus Report ~

~~ Monday, September 4th, 2023 ~~

~ 70th Edition ~

~ SPECIAL LABOR DAY EDITION ~

A Day for Workers

The first Labor Day was held in 1882, and its origins stem from the Central Labor Union's desire to create a holiday for workers. It became a federal holiday in 1894.

Today we will be discussing the following topics:

What is the current market sentiment?
What might our market cycle volatility trend be telling us?
What are a few watch list stocks?

Let's Go!

A lot of players were faster and stronger, but I think being able to just zero in and focus was my strength.

Chris Evert, tennis champion

Current Market Sentiment:

With five trading days last week, as determined by measuring the difference from the Friday close of 451.19 from the Monday open of 442.24 price, we ended the week higher by 8.95 points as a measurement on the SPY broad market exchange traded fund (ETF), with a strong finish to the week on Friday, after trading down into a minor support area, where we had the bulls demonstrating their desire to push the markets higher with a strong move on Tuesday earlier in the week.

Broad Market Cycle Volatility Trend

Up - Green Price Bars

~~ As of September 1st, 2023 ~~

Market Cycle Volatility Trend Week Ending Friday, September 1st, 2023

(Click Image Above to Enlarge)

When looking at our Market Cycle Volatility Broad Market Trend chart above, we want to notice when the financial markets turned to a green / up trend state recently on Tuesday, August 29th, when our Market Cycle Volatility Broad Market Trend went from a yellow / transitioning down condition to a green up trend state, which means we have an up trending market with the potential to move higher over time relative to recent past.

What might all of this be telling us about the broad markets, and what might be a game plan for the upcoming week?

The question now becomes:

Where might the markets go from here?

Last week, with 5 trading days, the market provided for what I call "bullish breakout" where we had a strong move on Tuesday, after a recent 1+ week of prior consolidation, and where we had a daily close > open 3 out of 5 days, to be ending the week slighly down from the open going into the holiday weekend.

It's been a while since I last produced a Market Focus Report, and in that one, I wrote, "...With continued consolidation, as long as nothing majorly negative happens, I believe we will continue to see bullish consolidation, with the potential to break out and move higher when trading at recent highs and into prior resistance levels.."

What has happen since?

The markets have pretty much made strong gains, as the bulls have come back into play pushing us higher.

So what's next?

With the current range between 430 and 460, look for several weeks of consolidation in this area, before the next leg higher, as long as we continue to stay above the current 100 day moving average. A break above 460, when it happens, will bring more upside to come.

Top Stocks moving higher since recent VTrend Green Signal on the SPY

(Click Image Above for More Details)

** NEW Volume Breakout Swing Strategy **

Recently, I have been working on improving some of my trading strategies, both for day and swing trading. One strategy that I have now developed is based on volume break out.

In the above graphic you will find a list of selective top stocks that have recently signaled a long entry following the Volatility Trend green signal issued on the SPY as of 8/29/23 last week.

Sep 4, 2023