Monday Morning Gap, Selloff, then Recovery

Hi everyone,

I hope you are having a great Monday!

In this article I’ll concisely share my thoughts on the day’s action. And share a bunch of stock charts that caught my eye.

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Now let’s dive in ↓

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Market Action

QQQ - sold off after the gap down but good close, another upside reversal at the 21ema

IWO bit weaker of a close

Trends ( Based on QQQ)

Shortest - 10 Day EMA - Down - Below declining

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Sectors % Change from Open

Strength in biotech

Key Stocks in Deepvue

NVDA holding above the 10 ema, strong close, ideally continues to tread water

CRUS still tight after ATH break

BROS inside day

PI range at the 21

COHR new ceo and strong breakout

NVAX strong breakout from the tight area.

NVCR strong move post gap up

RDDT forming a range at the 21ema

MSTR cup and handle bitcoin theme

Market Thoughts

Monday morning gap up then selloff then recovery.

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. Look for a tight and logical entry point.

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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Cheers!

Richard


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