+13% in 10 Days – The Lockout Rally Continues

Market Action

QQQ – Strong trend day after initial consolidation. We’ve rallied over 13% in 10 bars and are back above all the moving averages. Jackson hole Friday will be a news catalyst.

IWM – moving from the gap

Market Corrections Case Studies

Most of you have probably already read through these but I will include them daily until we resolve the correction

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Here are the two case studies of 2018 and 2020 that provide examples of what you can expect form a correction just in case you haven’t seen them yet.

I’ve been taking a look at recent sharp corrections. Here is the 2024 Correction so far compared to the 2020 Correction. Patience (while still prepping for the uptrend) until test/reclaim moving averages from below + form a higher low. If active, tight leashes on trades

QQQ 2024 versus 2020 Case Study – All corrections exhibit similar type action.

Here is the current 2024 Correction versus the 2018 Correction. Notice in that one there were similar points where it looked to be over, only for the rally to fail at key MAs. We’ll see how this current one ultimately resolves. The low could be in, one day at a time.

QQQ 2024 versus 2018 Case Study – Patience is required during corrections, taking it day by until the market proves itself.

Also key is how potential leaders are acting. As the correction ends they will be all setting up and breaking out through pivots.

Look for group action, big gap ups, volume surges, Higher lows as the market makes lower ones, reclaims of moving averages

Avoiding the chop and frustration is key during corrections. Experienced traders can look to pick spots, daytrade or see if levels holds during the day to hold through the close but less is more until the wind is back at our back.

With all that said you should be getting excited. We’ve had some great opportunities in 2023 and 2024 and this correction is setting up another one. The longer this goes on and the deeper the correction, the greater the potential for another uptrend that could change your year and life. You just have to do your homework and be ready mentally when that happens.

Trends (4/4 Up)

Shortest – 10 Day EMA – Up – Above Rising
Short-term – 21 ema – Up – Above Rising
Intermediate term – 50 sma – Up – Above Rising
Longterm – 200 sma – Up – Above Rising

Groups/Sectors – % Change from Open

Performance Charts from Deepvue

Heatmap from Deepvue

Key Stocks in Deepvue

NVDA continuation up. Consistent buying

ASTS follow through up, expect volatility

UPST strong push from the hidden tight area. Hidden if you don’t use RMV 😉

ZIM gap up on 2nd highest volume. Not the best close but one to watch carefully

APP forming a range here

AXON tight again

KVYO upside reversal within the range against the pivot

ONON forming a range up the right side after earnings

EXAS still tight against the 200. likely pushes soon

IBIT inside day, keep a close eye on this

IOT nice follow through up from upside reversal

TGTX expansion from hidden tightness. #RMV

CPNG strong move from handle

Market Thoughts

Strong action again to day as stocks continue to rally and move up the right hand sides. Many groups and themes working.

Again, short term “extended” feeling here but early in a cycle that can stay true for a while. Be ready for anything and expect a large down day and know how you will react for each and every position you have. Know which are the cores you want to try to hold, and which are your weaker ones you are willing to toss out

News event happening friday, we may see some chop into that and then high volatility.

Day by Day – Managing risk along the way