A Change in Character in the Market?
Has the Trend Ended?
Hi everyone,
I hope you are having a great weekend!
In this post I’ll concisely share my thoughts on the market health and leading groups.
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Now let’s dive in ↓
Market Action
The QQQ has now broken below the 21 ema.
On Wednesday we gapped down and closed near lows, then on Friday, after a quiet day on Thursday, we gapped up, tried to push higher before failing and closing near lows. We are still above a rising 50 sma.
The IWO is also now below its 21 ema.
SMH is sandwiched between the 21ema and 50 sma. It failed to decisively move higher after twice trying to push higher than around 160.
Quick Note on the 21ema
The 21ema for me is a great gauge of the intermediate term trend. Stocks and ETFs often respect it as they go from base to base.
Remember though that it is an “level of interest” (a Brian Shannon Term) meaning we watch how price action builds around that area.
Key Stocks
NVDA is still in an uptrend but looks to be basing. A break on heavy volume below the 50sma would be a back look for the market at large.
PLTR may look to retest that pivot. Watch how it acts versus that area.
UPWK - this recently gapped up on huge volume after a 900% EPS surprise.
VRT - another recent EPS gapper to watch (This is the 3rd gap)
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below declining
Short-term - 21 ema - Down - Below declining
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Looking through my screens I noticed:
Semi conductors pulling back and basing
Banks acting well
a lack of overall mature setups
Wide List via Deepvue
These are stocks that caught my eye from the Deepvue Universe Scree, Liquid Strength Screen, Power 21 Screen, and IPOs. Not all are completely ready.
AEHR AI ANET ANF AXNX CELH CAVA COIN DKNG FRSH GDRX MGNI MRVL MTSI NET NVDA ONON PLAB PLTR PSTG RILY RIOT RIVN RXRX SG SITM TEAM TNDM TSLA UPWK VRT XP
Market Thoughts
We’ve had a very strong opportunity window these past few months. However with the break below the 21 ema and not many prime setups we may need to rest for a few weeks (which would be very healthy long term).
Watch for EPS opportunities and continue to manage your positions.
Remain focused on the leaders, those will give you the clues and the best performance for when the rally continues.
Be ready for anything and manage risk!
Share Your Market Thoughts
What do you think about this market? What stocks are you watching?
Let me know below in the comments. And leave a like!
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Have a great weekend!
Richard
Good info, Richard. I just saw a vid that noted that a gap down within 2 days of a high ALWAYS began a big correction. That just happened. Also watch the VVIX. (vol of vol) A move above 110 is lights out. Also watch rates (10/30 yr). Higher from here will hit mkt.
Hello Richard,
A question regarding deepvue, beside stocks does it have e-mini S&P futures?