11/18/24: Market finally ended its decline, but early morning gains did fade. S&P finished above 21dma and so did Naz. IWM still sitting on 21dma.
Friday, Webby said he would feel good once we closed above the gap-down opening price for Friday. We did not do that today.
While the markets were relatively quiet, the hot stocks made big moves. See SQ, AFRM, HOOD, COIN, ROOT, LMND, INOD. Smaller moves, but worth watching: ALAB, APP, RDDT, and others I no doubt missed.
11/19/24: Good day.
Fears of Russian nukes seemed to spook the market in the morning, but a down session reversed into a positive close, which is usually considered a sign of strength. The indexes fell below the 21dma, but finished above it, which is good. The S&P had an outside day that was also an upside reversal, another sign of strength.
SPY closed about 10 cents above the Friday gap down high, something Webby was looking for. I think that also takes it from 1 standard deviation down back to 0.75 down, which Webby also wanted to see because that means we are likely to get back to the regression line of 0 standard deviations. I suspect Webby was “pushing on the gas” at this point. If I have time, I will watch the Tuesday Swing Trader video with Webby’s detailed technical analysis.
IBD:
Investors could have made some incremental purchases or add-on buys Tuesday as some leaders such as Nvidia and Tradeweb stock flashed entries. Generally standing pat, perhaps after trimming exposure last week, makes a lot of sense.
Work on watchlists and exit strategies. The recent pullback is creating potential buying opportunities. On the flip side, what’s your game plan if the major indexes sell off and drop below their 50-day lines?