7/7/2026: Everyone on Drugs
- $XBI $IBB starting to accelerate and could use a small bit of digestion.
- $USO a bit of a bounce today and we started to see the strength yesterday with $VLO $DINO $MPC.
- Memory names washout and rally near their 50sma. $SNDK $MU. Not putting it past this group to stage a multiday rally but not thinking these names are ready for new highs.
- Photonics continue to show weakness $LITE $AAOI $CIEN.
- $WGMI names continue to sell off despite strong news for $WULF yesterday.
- $NVDA holds the 200sma again just as it appeared ready to slump.
- $TSLA flirting with higher but cannot seem to regain it's footing above the 200sma. If we can get back above that level I suspect the "robotics" theme is something we start to hear more about.
- $SPCX holding along IPO lows. $149 is an important spot to hold.
- Software and more importantly cybersecurity is acting best in the growth sector but not much to do there $PANW $CRWD $DDOG $RBRK $OKTA.
- Healthcare, Pharma and Bio is the best of the bunch so for me that means less is more until I see the Nasdaq leading the way.
Software pack showing the strongest Stage 2 characteristics:
$SNOW $RDDT $TWLO $FROG
Also few other names:
$DDOG $NET $NAVN $BAND $CART $DOCN $OKTA $CRWD $PANW $CRWD $DASH
Software continues to show some of the best relative strength while semiconductors take a breather.
When I first started trading I was completely lost
I soon realized that the best traders in the world all focus on 1 thing:
Tight price action or the VCP (Volatility contraction pattern)
When I discovered this concept everything changed..
I stopped chasing random moves.
I started searching for tightness.
Price is like a spring:
-It compresses
-Volume decreases
-Higher lows are made
This builds energy for the next move up
the tighter the coil, the bigger the potential release, and our job as traders is to recognize that energy building.
Then position yourself when the spring explodes.
Train you eyes to search for this tightness and it will change the way you trade
Just because we have a single green up day doesn’t make the market conducive to swing trading. Groups that got their asses kicked over the last couple weeks need time. You don’t need to buy every green day. Paytience pays. Let the charts setup. NO FOMO.
$QQQ 21 day consolidation with 8% depth.
When the markets rough it gets a bit crazy on here with discussions swaying away from the markets. Continue to focus on tracking rotation, building RS lists and doing your homework consistently.
Chart via @Deepvue
Stay cautious within 7500-7600 on $ES
Channel high to channel low trades only. No nonsense within the NTZ & center point of the range.
I continue to like the 20/50DMA below supporting that 7500 demand. Just need the go ahead over 7600 to really start slamming the table.
For those who have been eager to fade this $SNDK move... you have your first sign of a bearish structure shift here.
If we remain below 1895/1861, you should see the fade towards 1550 & the 50DMA.
Qullamaggie on Once You Stop Trying to Outsmart Things, Big Money Will Follow
“Yeah, Jerry Parker — do you know why he made it? And this guy is worth billions today. Because he followed the rules. Like the other guys, they just kept overriding the rules because they thought they knew better. Jerry Parker, he just followed the rules, and he made millions. Kind of funny how it works — once you stop trying to outsmart things, that’s when the money comes.”
When @Qullamaggie famously says: “Nobody is smarter than the moving averages.”
What he is really saying is:
“Nobody is smarter than the prevailing trend.”
And that principle has remained true now for decades, likely centuries, if we had the data.