Downside Reversal. Leaders Form Tight Areas
Hi everyone,
I hope you are having a great Thursday!
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 ↓
Market Action
The QQQ gapped up and closed lower back to the short term pivot
The IWO also with not the best close
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
Group performance chart from TraderLion:
Key Stocks in Deepvue
AMD continuation
S tight area. Now up or down? CRWD also tight
GTLB tightening and flagging
ESTC holding
PATH tight
PINS should move tomorrow, double inside
UBER tight day
FROG tight day
FRSH decent action
Market Thoughts
Better action in the leaders than in the QQQ as most stocks continue sideways. Many tight areas forming.
Reminder:
Risk Management is Paramount
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. These will telegraph the rest of the market.
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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Cheers!
Richard
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