The Russell 2000 Takes the Lead. ESTC, PATH, IOT Breakout

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 ↓

---

Market Action

The QQQ acted well with a good closing range. We remain right at the July highs and above rising MAs

The IWO took the lead today with a powerful move thorugh the 200 day. This feels like confirmation of broadening participation

Volume

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

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Mixed - just below flat

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Great action from almost all growth names. Software still standing out.

Here’s a Weekly Group Performance chart (% From Open) from TraderLion:

Key Stocks in Deepvue

ESTC power gap up on earnings beat. These types of gaps can be the start of multi month moves. You can look to enter Day 1, Day 2, or after a tight pattern forms.

PATH see ESTC comments

IOT see above comments haha

MSTR. All crypto names put in strong moves. COIN MARA RIOT…

AFRM a great one to study

NVDA continues to lag. Maybe small/mid caps time to shine as the megas take a breather

TSLA good response to gap down. Found support at 50sma 21ema confluence. IDK about the cybertruck tho.

Market Thoughts

Many stocks that were forming patterns last weekend had stellar weeks

UWL sorted by 5 day performance

Ideally we see more follow through and the QQQ also confirms up next week.

Reminder

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 this week’s action? (Leave a comment below)

---

This post was brought to you by Deepvue Charts. My Daily Driver for Charting, Alerts, Watchlist Management, and more!

I hope you found this article helpful!

Here is what you can do to help make them possible and support my work.

1. Leave a like on this post below

2. Subscribe to Trading Engineered

Cheers!

Richard


P.S. We just released a new free resource: The Ultimate Screening Guide

This will help you find top stocks faster and speed up your routines.