Technical Market Briefing 01/23/23

Technical Market Briefing 01/23/23

Can Overhead Resistance Be Taken Out?

Last week the indices initially failed to get a strong enough follow through to the prior week’s rally and suffered a strong pullback retest. However, they managed to hold initial KEY technical price and moving average support on Thursday and surged back nearly 2% on Friday, finishing mixed with a small gain for the week on the Nasdaq 100 and just a small loss for the S&P 500.

All eleven S&P 500 sectors closed with a gain on Friday. Communication services (+4.0%) led by a wide margin thanks to Netflix and Alphabet. Other top performers on Friday were the information technology (+2.7%) and consumer discretionary (+2.5%) sectors, reflecting renewed interest in the mega cap space.

By the close on Friday, advancers led decliners by a 4-to-1 margin at the NYSE and a nearly 3-to-1 margin at the Nasdaq. The strong surge back left both the S& P 500 & Nasdaq 100 just below their 1-year declining channel tops resistance lines. As a result, next week may be a critical one as the indices need to prove themselves with a breakout thrust to possibly complete important bottoming patterns and extend the rallies off their early month lows.

Key and leading sector ETFs such as SMH (Semiconductor), FAS (Financial) and XBI/LABU (Biotech) have developed BULLISH basing formations that could lead to important rallies in the next few weeks, if overhead resistance not too far away can be taken out.

That certainly remains to be seen, but nevertheless encouraging. Of course, we’ll keep you posted going forward at thetechtrader.com.

Remember: “Trade what you see NOT what you think.”

Harry Boxer
President & Founder, TheTechTrader.com


“Trade what you see, not what you think.”

WEEKLY TECHNICAL MARKET BRIEF BY Harry Boxer

Veteran Stock Trader, Analyst, Coach & Author

Technical Market Briefing 01/23/23

Technical Market Briefing 01/15/23

Start of a New Intermediate Uptrend or a Rally Back to Resistance?

The Indices had an important technical week last week, following through to the VERY strong upside
reversal that occurred on Friday, January 6th. The Nasdaq 100 was higher all 5 sessions and closed the week at the highs going away, aided by strong performances from large cap components AAPL, AMZN, MSFT, NVDA, NFLX and TSLA. That index gained nearly 500 points for the week! The S&P 500 also followed through nicely and managed to close near 4,000, gaining about 100 points for the week.

Advance/Decline ratios were quite positive and confirming the trends. Now the indices have overhead objectives near resistance to deal with at NDX 11,800 and 12,100 levels. The SPX resistance appears to be at 4,050-53 and near 4,100.

The 13-14-month declining tops lines lie just ahead and are important levels to take out if this market has designs on much higher levels. However, for now, many underlying indicators, including the McClellan Oscillator percent of stocks over their 40-day moving averages and the VIX volatility index, are short-term overbought and/or near key overhead historical resistance levels.

The KEY to action going forward is the interpretation of whether or not the conditions are a result of an initial thrust that starts a new intermediate uptrend or just another rally back to resistance in a bearish overall downtrend. We should be getting answers to that question in the next days and weeks. The near-term action going forward may tell the tale of where this market wants to go.

The markets appear to be at a crossroads here, so pay close attention to what is revealed next week. Of course, as always, I’ll keep you posted with my thoughts at thetechtrader.com.

Remember: ” Trade what you see, not what your think”.

Harry Boxer, President & Founder​​

TheTechTrader.com


“Trade what you see, not what you think.”

WEEKLY TECHNICAL MARKET BRIEF BY Harry Boxer

Veteran Stock Trader, Analyst, Coach & Author

Technical Market Briefing 01/23/23

Technical Market Briefing 01/02/23

Is a Sharp Rally in the Horizon for the Start of 2023 or Will They Sink Even Further? 

The indices ended the year with a weak performance in the last week, finishing down on the SPX & NDX for 3 of the last 4 sessions, with the worst annual performance since 2008! Final results show the Dow Jones Industrial Average: -8.8%, S&P 500: -19.4%, Russell 2000: -21.6%, Nasdaq Composite: -33.1%.

What is worse, the patterns that formed over the last 2 weeks appear to be BEARISH continuation patterns and do not augur well for a strong start to the new year. In addition, the McClellan Oscillator finished near neutral at -6.37 and certainly NOT OVERSOLD by any means. The percentage of stocks that remain BELOW their 40-day moving average remains at 62.5%

Mega cap stocks and former market leaders, Nasdaq Generals, continue to show bearish patterns with many of them finishing the year at or near KEY technical support levels, even though some of the same mega cap names that drove the downside moves ended up closing with gains because of a very late rally back to close out the year.

Apple (AAPL 129.93, +0.32, +0.3%), Tesla (TSLA 123.18, +1.36, +1.1%), and Meta Platforms (META 120.34, +0.08, +0.1%) were among the winning standouts for the group. Notwithstanding the positive finish for these names, they still lost 26.8%, 65.0%, and 64.2%, respectively, in 2022. Combined individual violations of their close support levels could result in a nasty start to 2023, unless we get an almost immediate sharp rally off the current levels.

The first 10 days of the year often indicate how the year might go by historical standards but based on their earlier November rally and lack of a year end “Santa Claus” rally, there is no telling whether the early action in 2023 will be an indicator this coming year.

Remember to “Trade What You See NOT What you Think” in 2023 and stay tuned to TheTechTrader.com for future technical direction and advice.

A HAPPY and prosperous NEW YEAR to all from TheTechTrader.com team!

Harry Boxer, President & Founder​​

TheTechTrader.com


“Trade what you see, not what you think.”

WEEKLY TECHNICAL MARKET BRIEF BY Harry Boxer

Veteran Stock Trader, Analyst, Coach & Author

Accredited Investors Symposium 2/19-21

Accredited Investors Symposium 2/19-21

Join Harry At A Rare and Exclusive Event For Accredited Investors With The MoneyShow

FEBRUARY 19 – 21, 2023

New York Marriott at the Brooklyn Bridge

This brand-new conference is an innovative forum for accredited investors to explore this promising asset class, discover under-the-radar investment opportunities, and acquire the insights, strategies, and specific recommendations that can turn profit potential into profitable success.

Join 12 investing experts helping other accredited investors hedge their portfolios through exposure to asset classes that are not correlated to a traditional stocks and bonds portfolio, so they can protect their gains, while identifying new growth opportunities.

Get a Standard Pass to gain access to the event, or a VIP Membership giving you annual access to all Keynots, Workshops, Session & Courses.
Harry will be Presenting
1:00pm-3:30pm
In this MoneyMasters Class, you’ll learn how to:
  • Build your focus list for the session: This includes analyzing patterns from the previous day, as well as pre-market news and price/ volume percent gainers.
  • Analyzing the early action: With the vast majority of intraday day-tradable patterns initiated at or very close to the opening of trading, Harry will show you how to closely analyze the first 15-30 minutes of pattern and related volume development to recognize what stocks may be excellent day trades or at least strong early scalp plays
  • How to draw trendlines, set targets, and stops: Harry will show you how he continuously draws and monitors/updates throughout the session his trend lines, channels, and important developing continuation patterns such as flags, pennants, coils, in addition to adding support and resistance lines for targeting purposes.
  • Determine your time horizon and know when to swing trade: Harry will discuss the channel patterns and charting time frames that help in determining when to extend to a swing, plus his key rules for swing traders.

Check out the full line-up of talks and Masterclasses HERE

Top 20 Biotech & Medical Stock Picks for 2023

Top 20 Biotech & Medical Stock Picks for 2023

This is the year-end video for the top 20 biotech and medical stocks for 2023. You will see details and why I picked these particular stocks and why I am focusing on biotech and medical. I think that the way they are setting up, many of them look great and will be at the forefront this coming year. For this reason, I found it difficult to narrow the list down to just 20 stocks.

Arcellx, Inc. (ACLX) was at 6.00 last May, then exploded to 27, went sideways for seven months, broke out again, and now it’s wedging. There’s no telling where a stock like this can go, but right now, I have targets in the 40’s, 50’s, and 60’s. I have a measured move at about 42, and then we will see where it gets beyond that. The STOP on this one in not below 27.50.

Chinook Therapeutics, Inc. (KDNY), after a 3-year base, broke out and coiled, broke out again, and is now running. I really think this stock longer term has the potential to be in the low to mid 30’s, then the high 30’s and 40’s.

PDS Biotechnology Corporation (PDSB) had a wonderful run in 2020-21 when it went from under a dollar, all the way up to the high teens in a 5-wave move, it pulled back, formed a double-bottom breakout, a breakaway gap, and moved up in a rising pattern. A rising channel may be forming. I’m looking for this stock to immediately go into the 13-range, then eventually, the high teens, if not more.

Rhythm Pharmaceuticals, Inc. (RYTM), one of our best swing trades of the year, is definitely on my list for 2023. It has gone from the 3-dollar range in May to the recent low 30’s. It is now consolidating. If it breaks out of here, you’re looking at a stock that will run to the low 40’s, and then low to mid 50’s at some point.

Other stocks on this video include Akero Therapeutics, Inc. (AKRO), Catalyst Pharmaceuticals, Inc. (CPRX), 89bio, Inc. (ETNB), Harrow Health, Inc. (HROW), Immunovant, Inc. (IMVT), ORIC Pharmaceuticals, Inc. (ORIC), Vaxcyte, Inc. (PCVX), PDS Biotechnology Corporation (PDSB), Replimune Group, Inc. (REPL), Roivant Sciences Ltd. (ROIV), Neuronetics, Inc. (STIM), Terns Pharmaceuticals, Inc. (TERN), Viridian Therapeutics, Inc. (VRDN), Verona Pharma plc (VRNA), Wave Life Sciences Ltd. (WVE), Zymeworks Inc. (ZYME), and Zynex, Inc. (ZYXI).

The Top Charts of the Day, published Monday through Wednesday, Thursday Swing Trade Review, and Saturday Weekly Wrap Up feature Harry Boxer’s video technical analysis to our Youtube Channel.

To learn which stocks Harry is adding to his model portfolio, including stops and targets, sign up for a Free 10-Day Trial to his Technical Trading Community — which includes both day trades, swing trades and intermediate-term stock picks.

Timecodes 0:00 INTRO 0:26 ACLX 1:06 AKRO 1:40 CPRX 2:07 ETNB 2:30 HROW 2:51 IMVT 3:16 KDNY 3:40 ORIC 4:03 PCVX 4:21 PDSB 4:44 REPL 5:03 ROIV 5:19 RYTM 5:45 STIM 6:12 TERN 6:35 VRDN 6:58 VRNA 7:18 WVE 7:38 ZYME 7:56 ZYXI