Leaders Falter. Time for a Pause?

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 up but closed poorly. We are a bit stretched from the 50 day and 21.

The IWO put in another downside reversal

Volume

Volume was higher on the NYSE and lower on 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

Most of my watchlist had poor closing ranges. Many leaders are trending but a bit stretched. Semis were strongest lead by AMD

Key Stocks in Deepvue

SMCI poor close. Still powerful from the BO

AMD best close among the semis, trending

NVDA trending but not the best close

DDOG negative action. many software names have weakeaned

ESTC may revisit the 21

UBER flagging into the pivot and 21ema confluence

CELH flagging here after the selloff bar. Wider and loose base. If it breaks lower and can’t hold the base lows, 200 day this could start a longer term decline. Yes the fundamentals look good but price action precedes them. We’ll see.

CRWD trending but poor close

Market Thoughts

Software leaders definite weakness today as we see some stalling and poor closes. could be time for some chop pullback.

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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