The Market Bounces... Will it hold?
Hi everyone,
I hope you are having a great Monday!
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 - Reaction Bounce. Is the low in? No one knows. Expect more volatile action until we get back above a rising 21 ema
Also, was experimenting with a Deepvue Dashboard setup for monitoring intraday action and movers if anyone is looking for ideas
IWO slightly stronger but still an overall downtrend
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
lots of tech bouncing, blockchain the strongest. Miners negative gap downs
Key Stocks in Deepvue
NVDA bounce but still a lot of damage to heal
COIN setting up a range here. CLSK, MSTR strong today
APP pulling back to the 50 day
HOOD same
CEG inside day under the 21
CPNG continues to show RS
SMTC, secondary semi name holding the 21
VRT at the 50 day
WING basing near the 50
Market Thoughts
A bounce in the context of an uptrend is guilty until proven innocent.
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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I still own EDU from the massive volume breakout, from last July. No chart violations yet, (surprisingly) although I always draw a trendline from all the lows since then and sell when that line is broken decisively. EDU and TCOM are the only 2 Chinese stocks acting well. That's pretty pathetic for China!
I like your dashboard presentation and will add one. I was stopped out on CLSK. I chose to set my stop tight from an entry of $18.115. Normally I would choose a recent support area which is lower providing price action responds favorably. This was a lesson learned. I may reenter tomorrow knowing today broke resistance and there isn’t any recent resistance at today’s close.