The Market Makes another New 52 Week High
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 continued higher. There is still some air again above the 21 and 50 sma. Also a lower trendline that you can draw now
We remain in a strong uptrend above the moving averages
The IWO pushed higher from the range
Volume
Volume was lower on the NYSE and on 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
Strong action pretty much across the board. Biotech, Energy, Solar
Key Stocks in Deepvue
AFRM reconfirmed higher, continues to be one of the strongest stocks this cycle
TWST also reconfirmed higher. Great move from the shelf I highlighted in late november
ENPH- solar theme continues to move off the bottom
CAVA, strong IPO just pushing off base lows. Oliver pointed this out to me
AMR great move from Nov 14 Gap up
GTLB tight and inside day
IOT double inside, should move soon one way or another
PATH push though the short term pivot today
Market Thoughts
Still not much has changed, market trending, stocks acting well. Be prepared for sell off days/profit taking days and know how you will react and your plan. These will come and test your conviction.
Whether that is cutting weakest/lowest conviction stuff quickly or staying with longer term rules… know what you will do in advance
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.
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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