In case you missed it this morning, we had quite the action-packed trading session.
As we do every Technical Tuesday, we started with a top-down view of the market.
Looking from 10,000 feet, we checked the percent of stocks, sector-by-sector, trading above their 50-day moving averages.
Just take a look at all these ETFs…
The way things are looking this week, I can already tell you that a storm is brewing for stocks in the red and orange territory.
Sectors like biotech and the home builders seem to be some of the worst in breed right now.
That said, when the “Doppler Radar” shows green, it tells us to expect sunshine and a bright blue sky.
Go back a few months ago to when we were getting beaten up by green energy…
I was still building long term positions in certain sector leaders.
There is a reason – we are going to see another wave of investments in clean energy.
In the economy’s eyes this is an industry that has to get built up one way or another.
Just look at what is going on with this Russian gas crisis.
It is lighting a little fire that translates into gains for positions like the Global Clean Energy ETF (ICLN) and Plug Power (PLUG).
Just as a cautionary note, they absolutely have to take out the 200-day moving average for their upside trend to remain.
That isn’t to say they won’t make the jump up there – I think it is only a matter of when and not if at this point.
Everyone is talking about the checks that are on their way from the government’s investment in infrastructure.
That means serious cash coming into this sector very soon.
And last week you may recall we talked about death crosses, but now we’re seeing the exact opposite from one particular stock…
Just take a look at this little golden cross gem forming on United States Steel Corporation (X).
I don’t know what the exact number is, but there are not many companies out there seeing this kind of activity.
Right now, I would note that we are in overbought territory within this sector but there hasn’t been signs of crescendo volume.
That means there is plenty of room before these stocks top out.
Top Stocks of the Day
First up, let me give you my daily options watchlist.
Below you will see all the stocks under $10 with the highest options activity yesterday.
This is the ultimate starting place to find opportunities each day because it lets us know where there is sufficient volume to create lucrative swings.
I also gave Money Morning LIVE viewers a little insight into the top 5 stocks I’m watching with my Penny Nation crew today…
SoFi Technologies, Inc. (SOFI)
Camber Energy, Inc. (CEI)
Ring Energy, Inc. (REI)
Bitnile Holdings, Inc. (NILE)
That came right before I ran off to our private club room to discuss the trade of the day.
You can find out more about joining Penny Nation by clicking right here.
I’ll be back tomorrow to discuss all my Wednesday picks and more at 9:30 a.m. (ET).
See you there, Trader!
Quantitative Specialist, Penny Hawk
P.S. Some of you often ask how I define the term “penny stock” and this brief clip should help to clear things up. Click on the video below to view my full commentary.
March 22 2022