The Market Refuses to Push Lower. NVDA Setup?
Hi everyone,
I hope you are having a great Thursday!
Just a quick note. My apologies that I haven’t posted the past few days. I’ve been working on a TraderLion resource that we are very excited about but has taken a lot of time. 📚 Back to regular posts from now on.
In this aritcle 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 - Volatile action continues as we stay below the 21ema.
We had a bad brreak 2 days ago, and an ugly fade yesterday into the close after the fed news. However, it stands out to me that today we had a chance to follow through downward and did not.
We now have another potential higher low as we sit below the 21ema. Yesterdays and todays low are key, can we hold above those and tread water sideways, setting up for a pop through the 21. We are also holding above the big reversal low from April 25
Individual stocks are a bit more progressed within their bases than the QQQ, having started really going sideways in early watch.
IWO looks similar and a stronger close
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Mixed - At flat
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down - Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
The top themes I see
Semis/AI/Software: NVDA MU ALAB PI KLAC TER PLTR DUOL
Restaurants/Fast Food CMG SG WING SHAK CAVA
Healthcare Equipment TMDX LIVN PRCT
Crypto: COIN HOOD
Energy & Miners
This is my current universe list:
AAPL ANF APP CCJ CAVA CLSK CMG COIN CPNG CRS CVNA DUOL GE GOOG HOOD HWM IOT LIVN MU NVDA PAAS PI ALAB PLTR PRCT SG SMTC TMDX TOST TSLA VRT VST WING
Key Stocks in Deepvue
NVDA setting up the right side. 50 sma potential pivot
ANF below a consolidation pivot
CAVA forming a handle and pulling back towards 10/21
COIN strong push today, just below the 50
CPNG consolidating after the gap
DUOL big base. IOT similar
MU compressed between the HVC & 50 day and the 21ema
PLTR big base, low cheat setting up
TMDX following through up/ PRCT same group and similar move from a big base
Market Thoughts
Seeing setups emerge. Leaders lead the market in their cycles. Volatile period but making higher lows now. Need to get that wedge pop through the 21.
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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