Strong End to the Week – Market Analysis and Stocks to Watch

Market Action

QQQ – decent end to the week constructive close after the gap down. Closing above the 50 sma

IWM -2 closes above the 21ema

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 2 closes above the 50sma.

ASPN strong push over 20%

IBIT one to watch next week, expectation breaker

DOCS Oops reversal

UPST tight

EXAS still tight under the 200

IOT upside reversal

SBUX tight ending to the week

KVYO tight range below the pivot

ONON upside reversal, one to watch next week

Market Thoughts

We ended the week strongly. Many stocks have moved hard without many pauses or ways for traders to enter. Seeing many tweets related to being underexposed or feeling fomo.

There will be many spots to catch the leaders as they pullback, to key moving averages, base pivots, HVCs, or form tight ranges. Many stocks and the market are not even out of their bases yet. Don’t jump in late out of nowhere, if out make a watchlist of the strongest names, set alerts, and wait for a tight and logical spot to enter.

Day by Day – Managing risk along the way