The Market Breaks out. Lock out Rally?

Hi everyone,

I hope you are having a great Saturday!

In this post I’ll concisely share my thoughts on Friday’s action. And share a bunch of stock charts that caught my eye

Now let’s dive in ↓

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Market Action

The QQQ was up strongly Friday after the one day pullback. This was a positive expectation breaker given the close Thursday and reconfirms the strength of this rally

We remain above the moving averages. and the market refuses to consolidate.

The IWO is still weaker, and the bigger caps remain stronger. We are still below the 21 ema here

Volume

Volume was lower on the NYSE and the Nasdaq.

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

Still continued stocks moving strongly and breaking out. Semis, Software, AI themes remain my focus.

Here’s a Daily Group Performance chart (% From Open) from TraderLion:

Key Stocks in Deepvue

PLTR great strength from the Oops reversal. Less than a 1% risk to the lows of the day.

The best Oops reversal occur against key levels (here the high volume close from the gap up), work right away, don’t hesitate at the prior low of the day trigger, and close strongly, triggering other pivots.

VRT squatted Thursday, but re-broke out and closed well

DUOL continued strong action from the earnings gap

DDOG early trigger through the HVC and a good close, but still within the consolidation

AMD nice reconfirmation, will need to consolidate for another low risk buy point

ZS just under the pivot, CRWD already pushed higher

UBER great move

DKNG consolidating above the base pivot

KD double inside

Market Thoughts

The market refuses to consolidate leading to a lock out type rally in many growth names.

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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Richard


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