The Market Tries to Bounce

Hi everyone,

I hope you are having a great Friday!

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 ↓

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Market Action

The QQQ tried to rally up but was rejected near the declining 21 ema. It continues to pull in close to the prior consolidation high with the 50 sma rising up

The IWO was similar, rejected at the 21ema.

Volume

Volume was higher on the NYSE and lower on the Nasdaq.

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down - Below declining

Short-term - 21 ema - Down - Below declining

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Bio Pharma Marine Shipping still acting the best. Banks acting well.

Key Stocks in Deepvue

ZIM and FRO among the strongest shippers. Note how RMV went to 0 before the start of this move

TGTX nice action off the 200 day

ASND great action off the 21ema

TWST so far finding support at the 21ema

RVMD tight and fits the theme, more of a speculative type name

BLDR nice action after the BO retest

AFRM upside reversal

NVDA pop through the 21ema

AMD not a decisive close but through the 21

Market Thoughts

Rotation going on, some stocks making a stand at the 21ema but still a selective environment.

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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