The Market Sells off after FOMC. More Downside?

Hi everyone,

I hope you are having a great Wednesday!

In this post I’ll concisely share my thoughts on the week’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 gapped down and closed at lows after the Fed News. Testing the 21ema and undercutting the range.

IWO reversal down breaking below the 21

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down - Below Declining

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Most stocks on my WL finishing red and with low DCRs. Semis were okay and rallied off the open. Biotech and Pharma strongest area but still mixed.

Performance charts

Key Stocks in Deepvue

SMCI still strong

NVDA still trending. Ideally puts in a consolidation if market pulls in

AMD gap down but decent action after EPS

MSFT reversal after EPS. More big caps report tomorrow. AAPL AMZN META

NVO strong action after earnings

CCCC looks explosive but is a biotech

IMCR also looks setup

QCOM orderly

Market Thoughts

Semis the strongest of growth type names. Negative action today in many software stocks. See how we end out the week and act after more large caps report tomorrow.

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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Richard


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