The Market Gaps Up and Holds - Strong End to the Week
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 - Follow through up and close right at the declining 21ema
IWO similar action, a bit further below the mas.
Look at the Qs it still looks a bit to me like we need some base building. Volatility is still high. Strong action in individual names as well which is a big positive.
Some opportunities to start building exposure Thursday morning through today but if a trend is truly starting we are still in inning 1.
This weekend is really important though. Spend time updating lists and identifying the themes that have been strongest and the top 3 stocks in them.
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Up - Above Rising
Short-term - 21 ema - Mixed - Below Flat
Intermediate term - 50 sma - Down - Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
The top themes I see
Semis/AI: NVDA MU ALAB PI KLAC TER
Restaurants/Fast Food CMG SG WING SHAK
Energy & Miners
Key Stocks in Deepvue
NVDA awesome move popping back through the MAs
GOOG strong gap up after earnings
CAVA powerful move up the right side of the base
SG follow through up
PI inside day after the breakout to ATHs
ALAB super move from the ipo base. Notice how RMV went to 0 yesterday
WING Breakout from the base
COIN up through the MAs. See if it can push through that swing high. HOOD very similar chart
Market Thoughts
Strong day from the indexes and leaders. Now can we follow through next week. Still very early and volatility is still high. Not out of the woods yet but promising.
The stocks that just broke out will have an ema crossback.
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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