The Market Bounces off the 21ema
Hi everyone,
I hope you are having a great Tuesday!
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 moved well off the gap down open and closed above yesterday’s high. So far this has been a successful bounce off the 21 ema as we continue to consolidate the power move up in november.
The IWO was weaker but a tight day
Volume
Volume was lower on the NYSE and on the Nasdaq.
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
Software continues to stand out
Here’s a daily Group Performance chart (% From Open) from TraderLion:
Key Stocks in Deepvue
ZS setting up a continuation spot. CRWD continues to trend well, is the leader. S up after earnings
IOT inside day
ROKU short pattern
SNOW still tightening
PATH tightening after gap
DUOL inside day
ESTC strong action
GTLB nice close after earnings
Market Thoughts
Good action from the slight gap down. Individual stocks are acting well. We’ll see how the recent EPS moves play out PATH IOT GTLB ESTC
Reminder
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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Richard I like the positioning of the RMV above the volume. I noticed the RMV for ZS and IOT is at or very near zero. If I understand that indicator it's likely there will be a significant move one way or the other within a day or two.