Gap Down and More Damage

Close below the 21ema. Some stocks with good DCRs

Hi everyone,

I hope you are having a great Wednesday!

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

The QQQ gapped down with a poor DCR. We closed below the 21ema

The IWO also gapped down, tried to rally, but closed near the open.

Volume

Volume was lower on the NYSE and the Nasdaq.

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

Bio Pharma Marine Shipping among stocks acting the best. Most groups weak. But may names with upside reversals

Key Stocks in Deepvue

MARA strong action off the open

CRWD decent DCR but below the 21ema

S breaking lower

ZIM strong move off the bottom against the longer term trend

AMD below the 21 ema sharply

Market Thoughts

Gap down and close lower on the indexes. Some stocks had better closes and responses to the gap down.

This decline has been sharp, suggesting it will need time to work itself out and volatility will be increased.

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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Richard


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