One question I get asked a lot is how I find the stocks I trade. I don’t do my own stock screening, but because I am trading short-term momentum, I listen for names that are trending right now. I will trade them until they peter out. Some names keep on giving year after year, but others (like HIMS and OKLO) get benched once they stop performing.

Being in this space, there is no shortage of people sharing their stock picks, often unsolicited. 😅 When someone is adamant about a stock, I look up the chart, and if I like how it’s moving, I’ll add it to a list I have labeled as “Review.” When I frequented social media, I also used to find names there. Whatever stock was buzzing, I’d look at the chart and decide if I wanted it on my list. (I’ll share more about what I look for in a chart in a later edition!)

Nowadays I still get ideas from the buzz of others, but one place I will often check is Alex Marenco’s weekly email. Y’all know I love keeping things simple, and Alex’s emails are short and sweet. For example, this is his latest one:

I hope you have a nice weekend.

The U.S. market is currently in a "Confirmed Rally" following the 4/8 Follow-Through Day buy signal, with recommended exposure between 80% and 100%.

The U.S. equity market ended the week up 0.94%, navigating a backdrop of earnings releases, the Federal Reserve’s policy decision, key economic data, and ongoing geopolitical tensions. Most sectors posted gains, led by communications, energy, and utilities, while materials, technology, and industrials lagged.

Year-to-date performance stands as follows:

- S&P 500: +5.6%
- Nasdaq: +8.1%
- Dow: +3%

Then he follows it up with a graph, his webinar info, and this PDF that’s my fave:

As a consultant and former fund manager who worked directly with William O'Neil, Alex’s work is deeply rooted in the classical analysis that has proven to work time and time again, and it aligns closely with how I trade. I definitely also look at these names for longer-term investing!

If you’d like to join his list, drop your info here on this form. Usually, the only way to get these emails is if you attend one of his webinars, but he has offered to add anyone from my community directly to his list! (And I’d definitely recommend attending a webinar of his!)

Last week, SPX spent most of the week moving sideways before breaking higher and putting in a new all-time high of 7,272.52.

Earlier in the week, price kept finding resistance around the ~7,120 area, which was a short-term resistance zone from the previous week. Buyers then stepped in and pushed price higher on Thursday.

After the Friday gap up and new high, we saw some sellers step in. So now the question becomes, what will SPX do next?

I have observed how closely price has been trailing along the daily 5 EMA since the March 2026 pivot low. We traded below the 5 EMA, tapping near the 10 EMA, and now we are back above the 5 EMA. In strong trends, price can stay extended longer than people expect, and pullbacks often stay relatively shallow with intraday selling getting bought up quickly.

Right now, I’m looking at three main scenarios.

Continuation Along the 5 EMA

One scenario is that price simply continues higher from here with minimal pullbacks or distribution days. If momentum stays strong, we could continue trailing along the 5 EMA with only brief pauses or shallow intraday selling that gets bought up.

Retest Into the Recent Consolidation Area

Another scenario is that some of the selling we saw Friday continues into next week, leading to a retracement into previous consolidation areas and levels:

This type of move could simply turn into more sideways digestion before continuation higher, or a longer pause before price decides whether it wants another leg up or deeper retracement.

As always, I want to watch how price behaves around key levels and around the edges of these boxes.

Deeper Digestion

If price pulls back further, then we could start looking toward the lower end of the recent structure around ~7,050, which brings the rising daily 20 EMA into play. Even then, after the kind of run we’ve had, that would still fall within the context of a broader uptrend unless price behavior starts materially changing.

So whether price continues higher immediately, retraces first, or spends more time moving sideways, the bigger thing I’m watching is how price behaves around these levels and how buyers respond as price pulls into them!

Cheers y’all! Looking forward to seeing more of you in the community. ✨