Software Stands even with the Market Downside Reversal
Hi everyone,
I hope you are having a great Wednesday!
In this post I’ll concisely share my thoughts on today’s action. And share a bunch of stock charts that caught my eye
Now let’s dive in ↓
Market Action
The QQQ gapped up and closed near lows with a big reversal, potentially a sign for more drawdown ahead. We’ll see if it can hold the range. If not, the gap lows/21 ema is an area of interest.
The IWO also squatted after trying to move out of the range. We’ll see if it can re-group and give it another go. The 200 day is still an area of resistance.
Volume
Volume was higher on the NYSE and higher on the Nasdaq.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Mixed - just above flat
Short-term - 21 ema - Up - Above Rising
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Software stocks stood out especially cyber after CRWD EPS. however many stocks on my lists had poor closing ranges
Here’s a Daily Group Performance chart (% From Open) from TraderLion:
Key Stocks in Deepvue
CRWD another gap up after EPS. Impressive price action and growth. The best low risk buy point was as it pulled back to the top of the prior consolidation and 21 ema confluence in late October
MDB great action as well. Stairstepping
NET great move
PLTR tried to follow through
TSLA downside reversal
Market Thoughts
Some nice moves in software but also many names with low DCRs. on watch to see if this follows through to the downside.
Remember:
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.
Have patience, focus on the best stocks with the greatest potential. There will be many opportunities
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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