MONDAY
Good move on the week, some key intersections with resistance.
The market has not yet resolved the trading range inflection point, but it certainly is making the case for a more bullish outcome.
No selling at the highs, just profit taking. More solid patterns. Dormant groups (e.g. FAANG) coming back into play. Semiconductors continuing their leadership role after a week or so hiatus. That certainly bodes well from an upside perspective.
That does not mean post-expiration week rally there is some profit taking. Indices up for a week, many stocks up for a week or more, some approaching resistance, some just feeling gravity after very good moves.
After perhaps some more upside, perhaps not, if there is some likely profit taking, we plan using that to position for some new upside buys.
Indeed, there are still a LOT of stocks in good position to move higher after a week's market gains. Many did move upside on Friday, so they may very well have some post-expiration weakness.
That works as well because we can use a bit of a pullback on the plays we have to set up some better entries. Chips still look good with many solid setups, some software as well.
In any event, the upside bias remains, a bit of a giveback early week is okay for the new plays, and if the recent leaders want to give back a bit more and set up again for new buys a la V did, even better.
Source: Investment House