Gap Up Again! QQQ approaches Highs

Hi everyone,

I hope you are having a great Tuesday!

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

Gap up after CPI and the QQQ continues the lock out rally.

We are now approaching 52 week highs but also getting stretched from the MAs. ideally we consolidate through time and let the 21 ema catch up

What a move from the IWO! Gap up and go through the MAs. Great to see smaller caps participating.

Volume

Volume was Higher 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

Focus list growth names acted very well, continuing to trend

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

Key Stocks in Deepvue

DDOG continuation up

TSLA gap and go

DKNG shakeout then rip to new highs

UBER still trending sharply

NVDA EPS coming up. many days up in a row

Market Thoughts

Strong day but a bit of acceleration to the up side here. Low risk entries are tough to come by now. Time to sit and be patient. Can sell some into strength to look to re-enter after consolidation.

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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