New Bull Market and New Market Leaders?

Hi everyone,

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Key ETFS

The QQQ continues to trend above its moving averages although it remains short term extended. Ideally, we get a week or two of consolidation and then it resumes higher as leadership continues to strengthen.

The IWM remains strong above its moving averages but could also use a bit of a rest.

Semiconductor stocks are the strongest group with the most stocks acting well. It’s a key level where it would be natural to see a pause.

Market Analysis

Overall we have seen a strong rally which has shaken off earnings gap downs and Fed announcements. We are a bit extended so a pause here would be welcome and would set up a lot of great charts.

What we don’t want to see is a cluster of harsh distribution days where the developing leadership also breaks down through moving averages and levels.

Stocks to Watch

In my opinion here are the top dogs in the market

• ACLS

• AEHR

• AI

• ALGM

• CRDO

• MBLY

AEHR Chart:

Most of these are trending nicely but need to form new setups. AI in particular needs to consolidate before I’d look for a low risk entry after its powerful move off lows.

Bottom Line

The bottom line is that we have seen strength in individual names and new leadership developing. We are a bit extended and could use some consolidation through price or time.

On down, days watch for stocks that are holding up well and focus on the leaders. Depending on your style watch for fresh breakouts to swing trade or look for pullback setups in the leaders to add/ build positions.

Manage risk always.

Have a great week!

-Richard