A Gap Down and Close at Lows
Hi everyone,
I hope you are having a great Thursday!
In this post I’ll concisely share my thoughts on today’s action and highlight key stocks.
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Now let’s dive in ↓
Market Action
The QQQ gapped down and dropped over 1.8% closing at the lows. We are back near the bottom of the structure. 4/5 last days have been down.
The IWO also gapped down and closed near lows. Tt is below all MAs
Volume
Volume was higher on the NYSE and higher on the Nasdaq.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below Declining
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down- Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Today we saw distribution pretty much across the board. There are not many positives to note although I noticed many pharma names among the top DCR sort of the Deepvue Universe.
Here’s a Daily Group Performance chart from TraderLion:
Key Stocks in Deepvue
TSLA attempted a rally but ultimately just downtrend continuation
NVDA close near lows
MBLY a stock to watch. the 200 day MA appeared recently
ESTC still holding up
Market Thoughts
Know yourself, with the market correcting hard if you are skilled to the short side you’ve probably picked some good spots the past few days.
If not the best practice is to sit and wait until ranges tighten, accumulation signs are everywhere, and there are setups again. Don’t chop yourself up trying to force a style that you don’t excel at.
Preserve Mental and Financial Capital.
Keep a list going of stocks showing RS. This homework will serve you well when we get back above the MAs
I’d recommend watching the Ultimate Trading Guide Webinars we are doing if you are looking for $STUDY Material.
What are your thoughts on today’s action? (Leave a comment below)
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Cheers!
Richard
Not really on yesterdays action, but surprisingly I’ve had few stop losses hit this week. Other than paying intermittent attention to the market, this has been a learning week for me, sans adding to AKAM on 20th.
It’s clear how busy your life has become - thanks for your attention to this site.
Can’t make it to the Webinar this weekend but will digest it…
Later.