Consolidation Day, Growth Stock Leaders Act Well

Hi everyone,

I hope you are having a great Monday!

In this post I’ll concisely share my thoughts on today’s action. And share a bunch of stock charts that caught my eye

Now let’s dive in ↓

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Market Action

Constructive consolidation day on the QQQ as we remain above the last pivot.

I would still like to see it rest/pullback for a week or so, letting MAs catch up in support.

The IWO remains below the 21 ema but closes well

Volume

Volume was lower on the NYSE and the Nasdaq.

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Up - Above Rising

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Individual growth names acted well on the slight gap down.

Here’s a Daily Group Performance chart (% From Open) from TraderLion:

Key Stocks in Deepvue

DUOL great action off the HVC

DASH trying to U turn after the EPS gap consolidation

TSLA back above the 200 day and 21. Room to fill the gap and 50 sma

DKNG great action versus the pivot

UBER nice action on gap down, still will need to consolidate

PLTR nice tight day

KD triple inside. I don’t know if its possible for this to go 4 inside lol, so likely moves one way or another

MELI forming a flag

Market Thoughts

Constructive move off the gap down open. we will need to rest at some point and that could start with some increased volatility.

Refuse to enter randomly without managing risk and wait for the spots to develop, they will. Stocks during strong moves always pull back to the 21 ema, 50 sma multiple times.

Have patience, focus on the best stocks with the greatest potential. There will be many opportunities

Take it day by day and manage risk along the way. Be ready for anything

What are your thoughts on today’s action? (Leave a comment below)

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Richard


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