Week 22 Trending Tuesdays
It has only been 1 trading day this week. So, not much change from the weekend notes where I covered the major markets and the SPX sectors. I will just do a quick rundown on some of the tickers that I am watching. There is 1 more day in the month and I will do an analysis of the month sometime later this week.
NVDA: I put on a small short trade today just because there is a thing called gravity. Having said that, the price movement has already defined all gravity. It is overbought but who is to say it cannot be more overbought. It is up +31% in 3 trading days and I am looking for it to ease up at least a bit. The first unfilled gap below is at 391.70 which is -2.35% below current level. That is where I want to close out my trade.
SMH: I put a small short trade on this one as well. It is up +14% in 3 trading days and I am looking for a pullback. The first unfilled gap is at 141.14 which is -4.75% below current levels. I am only looking for a -2% move below where I will close my trade.
TSLA: I do not have any trade on it, but it looks overbought. It is up +10% in 3 trading days when seemingly there was no catalyst (or if there was, I missed it). The only reason I did not short was because there are no unfilled gaps in the last 3 days. The closest gap I see is at 146 level which is -30% lower than current levels. I will watch what happens.
SPY: Price was flat today but closed close to the low of the day. No change in trending. Not much to say other than it did fill an unfilled gap above that was long-standing. Now it has all the reason to go down (just kidding). Based on today’s price action, the risk does look more to the downside.
QQQ: Price looks overbought. But it has been overbought for a while and still keeps going up. Will we see a crack in the big tech stocks soon or will we not? That really is the question. There is an unfilled gap at 332.91 created 3 trading days ago which is -4.87% below current level. I have a (small) short position.
IWM: The trending is short-term bullish but the trendlines are very munched together. So, a bit of an unreliable signal. It is not overbought nor oversold. The MACD histogram is close to going negative. I am short.
DIA: Price has been down 6 out of last 7 trading days. The trending is to the bearish side. Nothing much to say except that I am short.
EEM: The trending turned short-term bearish last week, and price was down big today. I am short.
FXI: Price had a massive move to the downside, and I got out of my short position with a good profit. The chart looks broken and I think there is more downside there. But with this big move down today, I do not want to see it bounce tomorrow and be holding my short position.