Momentum Move Up. Now What?
Hi everyone,
I hope you are having a great Saturday!
In this post I’ll concisely share my thoughts on yesterday’s action. And share some stock charts.
Now let’s dive in ↓
Market Action
The QQQ followed through again, overtaking the 50sma for the first time in a while.
This is 6 days up in a row now for over a 7% rise, quite a powerful move.
With many stock seeing a similar momentum thrust, ideally we see some consolidation sideways which would set up nice pivots.
IWO closing back above the 21ema for the first time in months
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
Strong action from my WLs. interesting to see energy names strong alongside growth
Here’s a Daily Group Performance chart from TraderLion:
Key Stocks in Deepvue
AMD powerful reconfirmation. needs some basing now
ANET tight inside day, still a lot of space between it and MAs
CRWD powerful outside bar
CYBR nice follow through
DASH nice follow though up. 53% EPS beat
PLTR nice follow through as well
NVDA back through 50 sma. some consolidation would be normal
AKAM, don’t see many talking about this one
WING great action
Market Thoughts
Now that we have had a strong thrust up, it’s about how the market consolidates it, through price or time. ideally we get tight action from the indexes and continued individual strength in more and more names.
Remember a week ago when everything looked terrible? How quickly things can change and a good reminder of why its important to keep up with routines.
How long will this move last? No one knows.
Take it day by day and manage risk along the way
What are your thoughts on last week’s action? (Leave a comment below)
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Cheers!
Richard
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