Market Shakeout to the 21ema
Hi everyone,
I hope you are having a great Monday! Definitely an interesting start to the week.
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 initially had a negative expectation breaker. However after undercutting lows it found support at the 21ema and closed near highs. Today’s low is a clear line in the sand.
The IWO was stronger, a good sign, and followed through up
Volume
Volume was lower on the NYSE and higher on the Nasdaq.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below declining
Short-term - 21 ema - Up - Above Rising
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Strong closes from most stocks on my watchlist. Software, cyber acting well.
Here’s a daily Group Performance chart (% From Open) from TraderLion:
Key Stocks in Deepvue
CRWD continues to trend well, leader. S also strong with EPS coming up
DUOL still below the pivot
NTNX double inside
SNOW tightening
SYM inside day
COIN and crypto names strong but getting a bit stretched on the daily
IOT, HVC still in play
ESTC close off lows but tightening
PATH strong close
SOXL upside reversal
Market Thoughts
Good action from names after a test in the morning. We’ll see how things act the remainder of this week and if things can follow through tomorrow.
Reminder
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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Cheers!
Richard
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