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The NVDA Squeeze Is About To Fire
The Nasdaq closed up 2.89% on high volume, the VIX is back under 15, and the S&P is 30 points from a new all-time high. AMD already broke out on climbing volume, and I think NVDA is the next one to go. I walk through the $230 breakout level, my $250 and $260 targets, and the three ways I am looking to trade it.
The Fed Raised Rates And The Market Went Up Anyway
The Fed raised rates this week and the index barely moved, but underneath the surface the RSP and the IWM have been drilled for weeks. My breadth readings went from 70% down to 20%, and that kind of stretch usually puts us in bounce territory. I also go through crypto, which was the strongest thing on my screen, and the Coinbase trade I put on today.
The Gap Pattern That Traps Traders Over And Over
What I want you to take from tonight is the gap pattern: when the S&P gaps 1% or more, that gap usually does not fill, and the drift lower traps traders who position for it. I show you how to trade it in both directions on a five minute chart.
The Market Dipped, These 3 Names Didn’t
While the broad markets were weak today, there were a few stocks that stood out. We’ll see if they have more to offer as we round out the week.
The Market Is Chopping, This Chart Is Setting Up
MDLZ has been stuck sideways and just came back down to support, and so far it is holding. I have bullish signals on the Compound Breakout Tool, squeezes stacked across the board, and some recent True Lows. My line in the sand is $60, and I walk through both the quick scalp and the bigger picture version of the trade.
Short Float, A Squeeze, And Earnings Coming
I found NEO on the options earnings calendar and the post earnings history is what caught my eye: a 15.4% move and a 13.6% move off the last two reports, plus a breakaway gap. It has a high short float, a squeeze building, and another report coming, so I bought the shares today rather than wait for the pre-earnings run to start. I would rather be early than late.
Everything Looks Bad Except One Chart
The whole board is neutral except one thing: my Mag 7 index is reading 99 out of 100 while the S&P 500 sits at dead zero. Next week is Fed plus quarterly OPEX, so I walk through the primary long on MAGS, the escape plan in IWM puts if they hike, and one energy name if the market falls apart.
Nobody Is Panicking Yet, That Can Change Wednesday
This morning’s hot PPI report is putting pressure on the markets while the chance of a rate hike goes higher. With only a few days to go until that rate announcement, I think it’s worth sitting out of any long term trades and sticking to day trades until we have a clear direction on the market.
Is SpaceX Ready To Rip Into Friday?
SpaceX has done the full round trip since the IPO: the run to nearly $230, the drawdown that bled retail out, and now a bottom. SPCX has recovered the 21 EMA and the anchored VWAP off the lifetime high, with a squeeze building underneath. I am looking for a rally into Friday.
This Is Where Stocks Roll Over And Die
We gapped down, chopped and closed near the lows, with the Nasdaq holding up better than the S&P. SanDisk tagged $1,800 and gave most of it back, which is exactly what this stock does, and I see real support around $1,700. If we gap down 40 or 50 points tomorrow I want to be a buyer there.
