SMCI Big Reversal

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 ↓

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Market Action

The QQQ closed below yesterday’s low and closed near lows.

IWO also weak on the day

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down - Below Declining

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Many stocks on my WLs closed weak today. However on the week made progress. Could be time for sideways chop to absorb some of the moves we’ve had.

Daily Performance charts from the open:

Key Stocks in Deepvue

SMCI we got the reversal today, continue to expect heightened volatility here. Unless a pro day trader/parabolic short trader nothing to do except get out the popcorn.

NVDA is still holding up really well. This is the liquid institutional leader

AMD forming out a mini base here

APP got some follow through

MARA and crypto theme could setup with a few days of sideways. COIN recent EPS gap but sold from highs

FOUR still going sideways

PLTR still forming this range

IOT seeing if it can tighten

TMDX still tight

HOOD nice action from the inside day, especially context considering

CCCC really nice move from that spot popping through the 21

Market Thoughts

Bit of weakness today coinciding with a blowoff in one of the leaders SMCI. Weekly charts look pretty good with many stocks have earnings gaps or strong moves on volume. I’d like to see a week or 2 of sideways setting up pivots.

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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Richard


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