The Nasdaq Fades Against Highs. Double Top?
Time Will Tell
Hi everyone,
I hope you are having a great Wednesday!
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 ↓
Market Action
The QQQ is up against its highs of the year. We finished off highs. This would me a logical spot to see some consolidation/pullback as we are still stretched from MAs
Some will call this pattern a double top. for me, based on the strength of this move, I think we likely continue higher after (ideally) a pause.
The IWO tried to push higher but closed at lows. We’ll see if there is further weakness.
Volume
Volume was lower on the NYSE and the Nasdaq.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Up - Above Rising
Short-term - 21 ema - Up - Above Rising
Intermediate term - 50 sma - Up - Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Action was mixed today on my focus lists, although more were pulling back than gaining. Crypto theme was working. Also Travel was strong.
Here’s a Daily Group Performance chart (% From Open) from TraderLion:
Key Stocks in Deepvue
MARA moving off lows
COIN strong bar as well
STNE powerful recent move on volume, one to watch after it forms a range
TSLA just over the 50 day and just below AVWAP from highs. ideally range forms here
DUOL wicked bar here
CRWD outside day, maybe the start of a pullback
NVDA outside reversal
Market Thoughts
Some profit taking signs out there. Ideally we start to see a consolidation through time here that lets moving averages catch up, setting the scene for more legs up.
Remember:
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. There will be many opportunities
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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Great read as always. Enough information and clean
I share your opinion, Today I took profit and im out in UBER, ZS and VTEX. Short QQQ from 387.
Still holding DUOL, SPOT, AI and ELF. Want to see the action tomorrow
My thought is a lower close in QQQ tomorrow, and later Nov a new high for the year. But anything can happen as always :)
Think alot of names look good beside the ones mentioned and the other names that are hot. DDOG, VRT, PLTR etc
Also alot of earnings left in names i like.. IOT, NCNO, PATH, ZS, BRZE
A pullback would be nice for sure. Got that early small QQQ short
How many names do you prefer to hold as a maximum?
Hi Richard, thanks as always for your excellent information. I noticed this morning – 11/16 – that right after 7 AM when Walmart announced their earnings all of the major indices went down. For all of them to go down at the same time it strikes me there must've been some programmed trading that was keyed to look at Walmarts earnings announcement. Does deep view have anything that would warn of this kind of thing?