Fresh Week & Focused

Last week was a bit hectic for me which prevented me from focusing on this journey. We're back this week so I'm prepping for tomorrow.

Let's take a look at how the sectors performed on Friday.

As shown above, we see that the technology led Friday's overall stock performance with a strong 3.84% daily change. At the same time, we see that VIX is at a low value of 17, which indicates a bullish temperament for the entire market.

Now, in the past, in two occasions, I've been hesitant to look at the top performer of the sectors. Typically this has backfired on me, so this time, I will take it. However, I decided I'll look at XLK and XLY. The reason I am picking Discetionary (XLY) as my second option among the waters to surf, is because of the change in price as it follows the Technology sector.

Let's look at the XLK stocks I'm considering for tomorrow.

NVDA

In the above, I've defined a channel, where we see that the last two days have been bullish for NVDA. So while I've been seeing a pattern across the board where there are two days of uptrend before I enter and continue to ride the wave, things change. The bullish trends for NVDA have been aggressive and so have the downtrends. We see this between April 23 - April 30 where the price went from $198 to $217 and back down to $198 range. So while the uptrend can possibly continue tomorrow, the entry has to be executed smartly if going for NVDA.

AVGO

I think AVGO has the potential for an uptrend. May 6 - May 7 were bearish with a downtrend that tested the support identified. However, May 8 was a recovery day for it and we see it reached the resistance price. Given that the RSI is in the 60s range, I think there is great momentum for the price to gap up a little higher and test the resistance of $430.

Again, I do feel hesitant with XLK, but I will be prepped for NVDA or AVGO if the entry seems plausible. Given the precautions I want to take, I will also consider the discretionary sector.

EBAY

While picking smaller holdings within a sector hasn't been a strategy for me, I do want to consider it. In the above, EBAY has a defined channel. I feel inclined to this wave because the resistance has been tested in May 5-May 8 but I it interesting that the support was never reached. In addition, all through the resistance testing, the RSI has remained strong.

I'm not entirely sure what the market will look like tomorrow. I do know that I will follow my rules and monitor NVDA, AVGO, and EBAY tomorrow for a good entry. If neither of the three seems to have a good entry, then I will not trade. Though I don't expect that to be the case tomorrow. Either way, I'll report tomorrow.