More Downside. The QQQ Down 4/5 Days
Hi everyone,
I hope you are having a great Thursday!
In this post 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 ↓
Market Action
QQQ - Down now 4 out of the last 5 days. A bit stretched to the downside in the very short term but to me this looks more like the start/left side of a correction.
I’ve drawn in the 2021 highs which would be a further move down to around 408. This is just a level of interest and would be a pretty normal correction depth of 9% for a consolidation within a longer term uptrend.
Anything can happen, we could reverse tomorrow. But until we get back above the MAs we are in a choppier more volatile period.
This was a good tweet from Oliver. Watch for your market cycle sweet spot
IWO reversal and close near lows again
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Down - Below Declining
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down - Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Blockchain oversold bounce. Semis, Tech more downside
Key Stocks in Deepvue
NVDA hammer at the 50. see if it can push off or if it needs more time. no huge selling volume.
COIN tried to push up but faded
SMCI reversed down
CRS many miners were positive
META holding above the 50 but fade today
AGI inside day
Market Thoughts
More pullback today. Odds increasing of a short term snapback up but still volatile. Feels like a normal correction. Keep the watchlists fresh and ready.
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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