Negative Expectation Breaker. Market Correction on the Horizon?
Hi everyone,
I hope you are having a great Friday!
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 - Disappointing. Negative expectation breaker and now back at the 50 sma.
Breadth continues to weaken shown by net lows and declining SA40MA %
IWO losing that pivot
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Down - Below Declining
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Reversals in tech, semis. USO strongest ETF
Key Stocks in Deepvue
NVDA inside day and holding above the 21ema
COIN pushed back down
MU back to the 10 ema
CPNG the standout from the Deepvue Leaders. Almost all of these were down on the day
AMD continues to show relative weakness among semis
HOOD inside day but reverses yesterday’s promising move
Market Thoughts
Ending a weak on a sour note after a promising Thursday. Geopolitical risk currently which the market is responding too. Less is more until we start seeing follow through.
Most stocks are back where they started Wednesday
Things can change on a dime so don’t get too negative. Watch existing and developing leaders as they approach key levels
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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