SMCI and NVDA Power Higher. Some Distribution but a decent close
Hi everyone,
I hope you are having a great Monday!
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.
Now let’s dive in ↓
Market Action
The QQQ and many stocks dropped near the open but grinded back higher to close out the day
IWO is now below the 21ema but decent close after testing the 50 sma. Needs to show something here.
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
Semis still strongest.
Daily Performance charts
Key Stocks in Deepvue
SMCI still strong. Looking back in recent history this is about as stretched from the 50 sma as it gets.
NVDA strong as well
GCT move on volume
GTLB inside day
VRNS tight to end the day. breaking out on earnings
SNOW ok action after the breakout today in context
NFLX tried to go then pulled in hard
APP tightish day
PLTR up after hours on earnings
Market Thoughts
Okay close after the open. The two big leaders SMCI and NVDA are working but getting a bit stretched. Doesn’t mean they can’t continue but in short term likely more volatility and greater chance of a pullback. If you have positions from lower know your plan wether you are a seller into strength or weakness. There’s not really two much else consistently working.
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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