The Market Falls 4% after Powell Speech

What's Next??

Aug 26, 2022

Hi everyone,

Let’s dive right into Friday’s action. We’ll cover the general market, and then individual stocks that stood out today.

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The General Market

The QQQ fell 4% on an increase in volume, undercutting the week’s lows. The short-term downtrend continues. Surprisingly, the Nasdaq had net new highs

The SPY was down 3.3 % also on an increase in volume. The NYSE also had net new highs.

The IWM was also down over 3%, erasing progress made over the past 2 days

The VIX closed above its 50-day sma for the first time in quite a while

Trends (3/4 DOWN)

Short term: Down (Still below the 5 SMA)

Intermediate Term: Down (below a declining 50 sma)

Mid Term: Up (Above a rising 50 sma)

Long-term: Down (Below a declining 200 sma)

Stocks

Not that many stocks showed strength today. I’ll post a more thorough list over the weekend.

ENPH holding the pivot and building a base (Weekly chart)

CELH holding as well for now, not huge volume on that BO

RYTM nice action, more of a swing trade stock

OXY just a bit below the pivot, looks like normal price and volume action

AMR, if it has one inside day then it could form another consolidation pivot

What stocks caught your eye today? Let me know below in the comments.

Overall thoughts

Today was a big step backward. The Fed reaffirmed that they will continue to raise rates. We are currently in a short-term down cycle.

The strongest stock will drift sideways if we see continued market weakness. Focus on those names and be ready to find spots if the market can push upward again in the near term.

Manage risk and exposure and be patient, we are still in a longer-term downtrend.

What do you think of today’s action? Let me know below.

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