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Showing posts from March, 2025

The Market Chronicles: Weekly review (24/03/2025), Week13

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This is my first weekly review of stock market. I will try to cover below things What are good stock ticker runners this week. What are potentials stock ticker runners or potential breakout stocks next week. Over all market breadth this week. How indexes behaved this week. How indexes will behave next week. Note: I will only review stocks which are either 30% up in a week or month or three months or six months or the stocks which satisfied Stan Weinstein basic requirement i.e stocks price which is above 30W MA and the ADR is more than 3.5% and volume increase recently when compared to earlier weeks. I will try to review these updates once I see any improvements are required for this. Which stocks ran good this week: AEVA: Up by 60% DM: Up by 106% GDHG: Up by  280% JYD: Up by 45% NAK: Up by 49% NIU: Up by 22% WOR: Up by 23% SLNO: Up by 50% Potential runners for next week: AEVA: ALHC: ARIS: DM: FSM: GDHG: GRPN: JYD: LX: MP: NGD: NIU: SAGE: SVM: XYF: Potential breakout runners for nex...

Understanding Stacked Moving Averages: A Key to Trading Momentum

  Understanding Stacked Moving Averages: A Key to Trading Momentum When trading stocks, identifying market trends is crucial to improving your odds of success. One of the most effective ways to assess market strength is through   stacked moving averages . This technical setup helps traders determine whether they are trading with the trend or against it. Let's break down what stacked moving averages are, why they matter, and how to use them in your trading strategy. What Are Stacked Moving Averages? Stacked moving averages occur when shorter-term moving averages (MAs) are   positioned above   longer-term moving averages in a sequential manner. This alignment signals a strong   uptrend   and suggests that buying pressure is dominant. Example of Stacked Moving Averages (Bullish Alignment) ✅   Price > 10MA > 20MA > 50MA > 200MA Each moving average is progressively higher, reinforcing the strength of the trend. This structure indicates increasin...

The Market Chronicles: Daily review (28/04/2025)

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 Pre-market futures look good: Potential candidates for todays trade: none Market breadth: All the MA's shown big drop. All the sectors shown weekness. Not a good day to buy stocks. ADD(Advancing stocks - declining stocks) value still shows -1544, Which is a bearish signal. SPY/QQQ/SPX have a big red candle today as well. Last three days alone these indices lost 5% of value. From the peak Feb 19th these lost more than 13%. Overall market is bearish. Not good for Swing trading. May be stick to day/scalping. My selected stocks status end of trading session: AEVA: Up 5% as well today. Happy with my prediction not to enter the market. Just sit outside and wait for good times.

The Market Chronicles: Daily review(27/04/2025)

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Pre-market futures look good: Potential candidates for todays trade: AEVA:  Reasons for the trade:  EV and  LiDAR  tech which is a hot theme from past couple of quarters. I see volume and price started increasing once the earnings report is released. Just crossed above 150MA, which is a great signal as per Stan Weinstein's. From Mark Minervini, a good candidate is which is already up by 100-300% person from it bottom(up by 100% in last six sessions). This is exactly matching that criteria. RS value: 98 Concerns:  Market is still in bad state, better not to trade. AGL: Reasons for the trade:  I see slight volume increase and price increased once the earnings report is released. I see delayed response to earnings( EPS change 37% and rev change 44%) Price above 150MA, which is a great signal as per Stan Weinstein's. From Mark Minervini, a good candidate is which is already up by 100-300% person from it bottom(up by 100% in last six sessions). This is exactly m...

What is market breadth?

Understanding Market Breadth: A Key Indicator for Smarter Trading When analyzing the stock market, traders often focus on major indices like the S&P 500 or Nasdaq. However, these indices don’t always tell the full story. That’s where   market breadth   comes in—a powerful tool that reveals the true health of the market by showing how many stocks are participating in a move. What Is Market Breadth? Market breadth measures the overall participation of stocks in a market rally or decline. Instead of relying on just a few large-cap stocks to move an index, market breadth indicators assess whether a broad range of stocks is following the trend. A strong market should have   broad participation , meaning most stocks are moving in the same direction as the index. Why Is Market Breadth Important? Confirms Trend Strength:   A rally is stronger when most stocks are rising, not just a few big names. Predicts Reversals:   If an index is rising, but fewer stocks are part...

How to find Market breadth when trading stocks?

Before going into it we should know what is market breadth and how it effect our trading decision?  M arket breadth measures the overall participation of stocks in a market rally or decline. Instead of relying on just a few large-cap stocks to move an index, market breadth indicators assess whether a broad range of stocks is following the trend. A strong market should have   broad participation , meaning most stocks are moving in the same direction as the index. In the fast-paced world of trading, identifying trends, reversals, and potential entry/exit points is crucial for success. One powerful way to achieve this is by using Percent of Stocks Above Key Moving Averages , represented by specific timeframes like the 5-day, 20-day, 50-day, 100-day, 150-day, and 200-day averages. These moving averages (MMFD, MMTW, MMFI, MMOH, MMOF, MMTH) provide an insightful picture of the broader market sentiment, helping you make informed decisions. Here’s how you can structure a trading strat...

The Market Chronicles: My Stock Trading Journey

Trading in the stock market is not just about buying and selling stocks; it's a continuous journey of learning, adapting, and refining strategies. Through this journal, I will document my daily (Monday to Friday) and weekly (every Sunday) reviews of the U.S. stock market. This will help me stay disciplined, analyse my decisions, and improve my market understanding over time. The Four Levels of Stock Market Mastery To succeed in the stock market, mastering different levels of understanding is crucial. This journey progresses from simple pattern recognition to full situational awareness and emotional discipline. Level 1: The Basics – Mastering Patterns The first step is getting familiar with technical analysis—candlestick patterns, bull flags, price action, and basic trade setups. At this stage, you are primarily a pattern-based trader, unaware of broader market conditions, trending themes, or high-RS stocks. Many beginners trade in isolation without considering market sentiment or s...

Understanding Parabolic Moves and Climactic Tops in Stocks

  Understanding Parabolic Moves and Climactic Tops in Stocks Stock prices often follow patterns that traders can use to anticipate future movements. One of the most crucial signals to watch for is a parabolic move, where a stock’s price skyrockets rapidly, often forming a chart that appears as if the "top is cut off." These movements are usually fueled by euphoria, speculation, and fear of missing out (FOMO), but they frequently end in sharp reversals. In this post, we’ll explore key concepts, historical examples, and how to identify potential climactic tops in stocks. Key Concepts and Indicators 1. Euphoric Buying / Climax Top Rapid price increases suggest emotional buying driven by FOMO. A climax top occurs when demand temporarily outpaces supply. 2. Blow-Off Top Happens in parabolic trends where prices rise sharply and then reverse as buyers become exhausted. 3. Gap-Ups Without Continuation A gap-up that immediately reverses or forms long wicks at the top signals selling p...

Understanding Bull, Bear, and Kangaroo Markets: What They Mean for Investors

The stock market is often described using animal metaphors to represent different market conditions. You may have heard of   bull markets   and   bear markets , but have you ever come across a   kangaroo market ? Let’s break down these terms and what they mean for investors. 🐂 What is a Bull Market? A   bull market   refers to a period when stock prices are rising or expected to rise. This phase typically occurs during strong economic growth, high investor confidence, and increasing corporate earnings. Bull markets often last for extended periods and present great opportunities for long-term investors to build wealth. Why is it called a Bull Market? The term comes from the way a   bull attacks —it thrusts its horns   upward , symbolizing rising prices in the stock market. How to Invest in a Bull Market Focus on growth stocks and long-term investments. Ride the momentum by staying invested in strong sectors. Avoid panic selling during mino...