Tradable near-term bottom?
Hello everyone,
Mega caps were bullish, particularly NVDA as the semicon sector outperformed.
I previously shared a list of leading stocks that looked vulnerable to breaking down below key pivots. This list was created to help me gauge risk sentiment, and some of these stocks like AAPL have responded well at these uncomfortable spots.
I went long LYFT and XBI - both closed decently. Probably should have re-entered NVDA, as the intraday technicals were sound. Overall, if market pushes on from here and my positions have a cushion, then will look to put on more risk / bigger size. Have been trading small due to the choppy environment since late March.
Despite the rise in yields and dollar, I like how some growth stocks are showing strength and recouping post-CPI losses.
Semicons
NVDA - briefly broke below support, before reclaiming above quickly on Wednesday. Followed through higher on Thursday, leading the semicon sector.
Daily Chart: NVDA
SMTC - one of the emerging leaders in semicon space. Big volume coming in recent days to support up-days.
Daily Chart: SMTC
ARM - bounce at key level. Slated as one of the previous leaders looking vulnerable, but has recovered well.
Daily Chart: ARM
AVGO - another semicon leader acting well.
Daily Chart: AVGO
MU - impressive strength since earnings. Held above 10 day MA. Briefly dropped below on Wednesday, before popping higher on Thursday.
Daily Chart: MU
New positions - LYFT, XBI
LYFT - one of the stocks that was trading above last Thursday’s high, and also recovered post-CPI losses, so was on my radar. Broke out from Wednesday’s inside day candle, so I went long, with stop below Wednesday’s low. Closed well, and I saw the news later that a minimum wage hike for ride-share drivers was delayed, which provided a catalyst for the stock.
Daily Chart: LYFT
XBI - biotechs are -12% below 52 week highs, and is building a little range below the 50 day MA. Went long with stop at recent lows. Want to see it break above downtrend resistance quickly.
Daily Chart: XBI
Some growth stocks holding up well
AAPL - identified this as a previous leader that was in trouble if it broke down below key supports, but bounced nicely from it. Will likely have positive spillover in terms of risk sentiment for broad market.
Daily Chart: AAPL
Below are my focus setups for the day:
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