Will Friday's Rally Continue? Or Was it a Fakeout?
Hi everyone,
I hope you are having a great Saturday!
In this post I’ll concisely share my thoughts on the market. And it has definitely been interesting.
At the end, I’ll share my wide list of stocks that I have my eyes on.
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Now let’s dive in ↓
Market Action
The QQQ showed an upside reversal at a level on Friday.
We remain below a declining 21 ema. One positive day does not mean a new uptrend. Ranges have also widened.
The IWO also showed strong action on Friday
SMH - The semiconductors undercut and reclaimed monday’s low
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below declining
Short-term - 21 ema - Down - Below declining
Intermediate term - 50 sma - Mixed- Below Rising (but flatening)
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
After going through 500+ charts here are the trends I noticed
Oil & Gas, Energy names are the strongest
Pharma acting decently.
Many growth names are just a week to a few weeks into bases
Select software names acting well
Growth breadth is poor
Key Stocks
NVDA showed a constructive upside reversal and maintains the mini flag. Earnings are next week.
The leader is still hanging in there so far.
CELH still holding up well
APP - software name acting well
UPWK - could potentially start a stage 2 uptrend
FRSH holding the 21 ema
Market Thoughts
Friday many stocks acted well off the open. however, this is in the context of a downtrend and increased distribution. If that’s the bottom we should start to see more constructive action and breadth to improve.
If not, it’s likely Fridays lows will be tested and undercut.
Either way keep your routines going. Keep a list of promising stocks and track where rotation is going.
Conditions can change very quickly so always be ready.
Wide List
After running my scans, here are the names that looked most promising/interesting to me:
AAOI ADBE AMR APP CAMT CELH CORT COUR CVNA DLO ETRN FRPT FRSH FSLY GPN GTLB INSW IONQ LLY MMP NE NOV NUE NVDA OVV PSTG PWR PXD REGN RIG RVMD SLB TALO TDW TFII TSAT TW UBER UPWK USM VAL WFRD X
Let me know if you have any other names on your lists.
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Cheers!
Richard
Thanks Richard !
Thanks Richard, this is helpful.