Hiding in leading stocks has been working - AAOI LITE MRVL SNDK TER SOLS GLW DELL STX continue to be very powerful stocks during a brutal market period.
Hiding in leading stocks has been working - AAOI LITE MRVL SNDK TER SOLS GLW DELL STX continue to be very powerful stocks during a brutal market period.
The powerful turnaround in price action since Thursday has justified building multiple positions, and even (NVDA) could invalidate its downside target near $130 if the market continues to hold last week’s low.
It has been an exceptional oversold bounce in the market with many small cap weighted names showing strong action. The market now sits at a decision point. From here it will either shift into a breakout trending market if buyers step up or we will start to retrace lower again.
This bounce has been more powerful than I expected. While many of the AI and tech leaders still need plenty of work there is no shortage of good bases and patterns outside of that group.
The risk off signal from weeks ago was further confirmed today. It looks like a larger correction has now started but we will need more price action to know how far down we will go. A $50 decline in NVDA might be possible down to the $130 area.
I noted to move to higher levels of cash as the market was topping. The market had run a marathon from the April low and then accelerated higher in a last exhaustive push. It will take some time to setup again.