SMCI Goes Parabolic

Hi everyone,

I hope you are having a great Thursday!

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 a bit wedgy action but staying above the 21ema

IWO stronger, rebreaks out. Volatility is certainly high

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

Daily Performance charts from the open:

Key Stocks in Deepvue

SMCI going parabolic. If you have a position know your plan. Wether that’s selling into strength, selling on weakness or a mixture. Expect increased volatility

2 straight gaps and at the psychological 1000 level. I would not be surprised to see this at 1500 or 500 next week

FROG huge volume, continuing stage 2

LYFT strong day 2 action after HV1

APP strong gap. Good volume and long base

ALKS nice earnings move. Biotech has been a strong theme

IDCC sounds like an AR/VR Play. Immersive experiences

FOUR near the top of the base

PLTR inside day

NET see if this can u turn

ARM pivot. This is not obviously an idea pattern, but it is a powerful stock

TMDX near a pivot

HOOD inside day. On the verge of a stage 2

Market Thoughts

Stay grounded in your process, follow your position management rules while you can. Increased volatility currently but a lot of strong moves to the upside. Don’t get FOMO or worry about stocks you missed. focus on what you can control and pick your spots.

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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