As we discuss in yesterday’s Focus List video and Friday’s GMU, a complete breakdown in Technology could bring a swift decline for markets. No one was spared today as IWM -1.2%, MDY -1.4% joined the tech heavy Nasdaq gapping down at the open/closing -2.4%.
QQQ -1.3% also gapped down, approx. -1.3% below a now declining 50d MA on higher volume.
“Uncertainty” on many front continues: Greenland, NATO, ICE, Tariffs and Rising 30yr Bond Rates all contributors and discussed in detail on the Sunday Focus List Video. If there was complacency in the market, there was a wakeup call today with the VIX jumping +26.5%
Some “tests” I am watching:
1. A hallmark of strong Bull Markets is to shrug off bad news/uncertainty……we are failing that test so far
2. Action of the QQQ…..we broke some support levels today….still early in the week… can Dec 17 Low hold?
3. Action of some Leading Tech Stock remaining:
MU +0.6% but the “shooting star” candle reveals exhaustion.
SNDK +9.5% is still in beast mode with an OEL candle showing institutional demand
BE +1.5% pushed higher
Data Center Stocks recently strong: CRWV, NBIS, IREN all lower but holding some support
Fiber Optic Stocks got support and a bid today
Semis – Mixed with NVDA, AVGO down while AMD, TSEM were up
4. Breadth: Decliners swamped Advancing issues 3.5 to 1.
XME +1.25% (Metals) and XAU +5.2% (Silver/Gold) were winners
Hardest Hit Sectors:
XLY -2.7% Consumer Discretionary
XLK -2.6% Technology
ITB -2.2% Homebuilders
XLF -2.2% Financials
MP setup triggered today but reversed later in the day.
CENX did not trigger as Stop/Go setup. Now it has morphed into a BnB Pullback Setup with tighter risk control.
New Entry: $48.21 New Stop: $45.90 4.8% Risk
Give the market conditions, both APLD and ONDS have been removed from the Focus List of Setups
HCC has pulled back calmly/acting normal
GOOGL -2.4% and AVGO -5.4% were hit on news AMD might be the preferred chip for META
GE -4.1% had a horrible day and hit our stop today for a tiny 0.6% loss
RKT -5% on rising 30yr rates today
FIGR -2.9% came in today after blasting higher last week
Still early in the week….consider tightening stops and reducing/closing any positions with small losses or small gains.
Trade Well
J