Semiconductors Go Parabolic | What now?
Hi everyone,
I hope you are having a great weekend!
In this post I’ll concisely share my thoughts on the market health and provide my wide watchlist for next week.
Now let’s dive in ↓
Market Action
The QQQ continues to trend above the rising 21 and 50 sma. We are once again stretched above the MAs. Currently we are 9% above the 50 SMA (over 6% is what I consider stretched
After failing the breakout, the SPY is now back above the pivot and at yearly closing highs above all the MAs.
The IWO is still weaker and chopping around. This shows how big caps have been much stronger recently
SMH, Semiconductor ETF showing strong action and a breakout after a retest of a prior pivot
Key Stocks
NVDA gapped up on earnings and currently sits at all time highs
AMD super powerful as well
MRVL gap up on earnings on huge volume
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Up - Above Rising
Short-term - 21 ema - Up - Above Rising
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Looking through my screens I noticed:
Semi conductors extremely strong… extended?
Big Cap strength (ST extended?)
Software, biotech working
Previous WL Performance
Semis and AI related names were the best performing this week. AMD AI ELF MNDY were the best stocks from my WL.
New Wide List
Here is my wider list for next week. A good subset of stocks to use when building your focus list. I’ll post my personal focus list tomorrow. Less names than last week. I’ve included some of the stronger semi names which are extended but I want to keep an eye on
From Deepvue:
AEHR AI AMD APLS ARRY BILL CELH CMG CRSP CSIQ CVNA DUOL ELF EXAS EXP FSLR GLBE GME GRMN IMGN IOT KRYS MRVL NNOX NVDA NWSA PACB PCOR RBLX RCL RIOT RMBS SHAK SHLS SHOP SMAR SMCI SWAV TGTX UBER VMC WIRE Z NXT
Final Thoughts
When a stock or the market is extended it can set up again either by a price pullback or sideways move due to time. I’d love to see the semis hold up and base while the market rotates to software or other growth minded groups.
I also want to see breadth improve in general.
If you missed some or all of the semi names you have to wait and be patient. Don’t chase. Identify correct entries where you can manage risk tightly and size a position adequately.
Be ready for anything and manage risk!
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Have a great weekend!
Richard