The Market's Early Strength Fades
Hi everyone,
Let’s dive right into today’s action. We’ll cover the general market, and then individual stocks that stood out today.
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The General Market
Today the major indexes initially rallied after the gap down, but the strength faded into the close.
The QQQ was down .99%. and the NASDAQ had net new lows
The SPY fell .66% and the NYSE also had net new lows
The IWM was similar down .92%
The VIX remains above all its moving averages
Trends (3/4 Down)
Short term: Down (Still below the 5 SMA)
Intermediate Term: Down (below a declining 21 ema)
Mid Term: Flat (right at 50 sma)
Long-term: Down (Below a declining 200 sma)
Stocks
The best ideas have been shorts over the past week and a half. However, it’s important to keep doing your homework and identifying potential leaders to pounce on when the market pressure finally lifts.
Some stocks I’m watching:
VRDN nice tight action
ENPH poor close but holding the range. A break of the Aug 22 low would indicate that it needs much more time.
FSLR continues to act well
OXY nice price and volume action, could have closed better
DVN moving up the right side
TMDX nice bar today
Overall thoughts
The indexes attempted to recover today but failed to close strong. Many stocks did the same. The short-term trend remains down. However, we are not right at the 50 sma which could be an area to watch for some potential support to come in.
If we pierce this line, close negatively on high volume, it’s further evidence that the market needs more time.
Be ready for anything!
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Have a great week!
Richard
Thank you, Richard. What do you think of uranium stocks?