The Market Sells Off - Correction Upon Us
NVDA, COIN, QQQ Charts & More
Hi everyone,
I hope you are having a great Monday!
In this post 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 - The negative expectation breaker Friday was telling. After the gap up we sold off hard, breaking the moving averages
IWO followed through down as well
Trends ( Based on QQQ)
Shortest - 10 Day EMA - Down - Below Declining
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Mixed - Below Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Deepvue Leaders almost all show negative action. Miners up
Key Stocks in Deepvue
NVDA downside reversal and back below the 21ema. Surprised not down more given the QQQ action
COIN negative bar
MU near the 10 ema. If a stock si above the 10/21ema right now it is showing some RS
APP has been one of the strongest tech names. back to the 21ema
PAAS and other miners have had a strong move. can watch for the 10/21ema pullback
AGI near the pivot. big reversal yesterday however
TMDX holding up well on a relative basis
MSFT big hit
Market Thoughts
The negative expectation breaker was a tell. Gap up today and then consistent selling. Keep note of stocks and themes holding up well.
How the market acts in response to this will be key. Do we see acceleration to the downside, a weak rally up before more selling, or do we snapback and hold.
Always remember that as bad things look, it’s amazing how things can shape up quickly.
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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