[Platinum Watchlist] (5.26.23) Overview of May and 1 stock update

Good morning.  

We had some paper trades trigger yesterday which can be reviewed in the posts listed above.  

We still have one position left in the portfolio this week.   

BWA closed up 1.43% hitting resistance at the 50-day SMA. Support remains at the 20-day EMA which is slightly below the cost basis. There is a small rollover in the Stochastic. If price action can move past the 50-day SMA, the next level of resistance will be around 47.64. In order to defend the gains, a stop limit could be placed above the cost basis.   

Watching the Nasdaq and S&P rise yesterday due to the NVDA hype while the DOW and Russel fell was quite telling that we are not in a broad market rally.   

The Advance-Decline Line, also known as the A/D Line or the Breadth Indicator, is a technical analysis tool used to measure the breadth or overall strength of a market or index. 

It provides insights into the number of advancing (rising) stocks versus the number of declining (falling) stocks within a given period. If you looked at the Nasdaq Advance / Decline line yesterday, we would find declining stocks outnumbered advancing issues.  

By analyzing the Advance-Decline Line, traders gain insights into the strength and breadth of market movements, confirmation or divergence of price trends, overbought/oversold conditions, potential trend reversals, and the validity of breakouts. 

It serves as a valuable tool for assessing market health and making informed trading decisions.  

We are heading into a three-day weekend and with an unresolved debt ceiling situation looming, I am in no hurry to initiate any new positions. With three more trading days to go in May, the paper trade portfolio maintains a gain of over $4,200.00. 

Utilizing a trading plan and reducing down-side risk provide traders with a higher probability of success.  

Have a great Weekend!