The Market Bounce Continues. Dead Cat or Rally?
Hi everyone,
I hope you are having a great Tuesday!
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 ↓
Market Action
QQQ - Continued move up from the inside day and a good close. Approaching the declining 10ema. I like that breadth is turning up and new highs
IWO similar action, at the 10ema
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Down - Below Declining
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down - Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Same as yesterday lots of tech bouncing, blockchain the strongest.
Key Stocks in Deepvue
NVDA back to the base lows
COIN pop up. Blockchain stocks strongest group currently
CPNG just below the highs
OSCR has been acting well
CRS strong miner
GE strong post EPS
MEDP strong bar after earnings
CLSK continues to rally. short term extended
DUOL up through the MAs. fan of the story and growth. can the price action tighten
Market Thoughts
Day 3 of a potential low. Bounce was to be expected and has to prove itself.
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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