✏️ Weekly Report: Volatility makes Cash the King againGENERAL COMMENTS
Today, the Federal Reserve maintained its interest rates unchanged, highlighting the ongoing challenges in curbing inflation. Initially, this announcement propelled the markets upwards, but a sharp downturn occurred in the final hour, leading to a decline as the day concluded.
The erratic market behavior demonstrated today makes it increasingly challenging to maintain positions in momentum stocks, and the majority of this quarter's earnings reports have been underwhelming. This situation underscores the strategy that cash remains paramount, complemented by selective, quick trading opportunities, as depicted in the following charts.
I will begin tonight's chart analysis with the Nasdaq-100 (QQQ).
NASDAQ:QQQ
The Qs are forming a bearish formation. What is worrying is that this is below the 50D Simple Moving average. As trading is a probabilities game, we can conclude that this leads to probabilities being lower that we continue to the downside. However, the direction of the general market indexes are very well influenced by the fundmental story of the economy health.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NASDAQ:SMTC
SMTC is up $4 from the $33 Buy Point (alerted in previous versions of this idea - go and check. Believe and Follow). This peaked yesterday with about +20% profit since the alert last week. Of course the way I manage this is never to let this to turn into a loss. My general go to tool is to take half here.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NASDAQ:KLAC
KLAC fell back to $687 after missing earnings. This of course stopped me out - but at no loss, since I move stopped up to break-even.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NASDAQ:SMCI
The stock missed its earnings and suffered a severe reaction of a gap down and drop -20% on the intraday.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NASDAQ:NVDA
NVDA slashed below the 50D SMA and this stopped me out. Waiting and watching this TML during its base building period.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NYSE:GS
Up $7 from the $419 buy point with stop raised to $416 just in case.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NYSE:CRM
CRM is prone to go lower if the market continues falling. A break below $266.50 is great place to short.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NYSE:LLY
Gapped up on good earnings. The next technical buy point is $801 accommodated with heavy volume.
––––––––––––––––––––––––––––––––––––––––––––––––––––
NASDAQ:MRNA
Earnings are due out tomorrow. If earnings are good then zooming through the $116 on good volume is a great technical buy point