The stock market has been open for about 20 minutes now, and I didn’t do an analysis yesterday, so I’m diving in. Starting my analysis with the S&P 500, looking for chart patterns on the 3-day chart, price spiked over the last session, but ultimately closed down. The current candle had pushed up to some fairly strong resistance and is pushing down again. Overall, since early Feb. equities have been pushing down, and it looks like there’s more weakness in the immediate future.
Looking at the daily chart, I’m seeing more of the same. Price, it could be argued, made reversal moves back to the upsides, but there are a lot of upper wicks, which doesn’t convince me. I’m going to look for shorts today.
Side note: In my effort to dive into stocks as I see them, I’ve caught myself not doing an initial, pre-trade analysis and writeup for each stock. If I see something I like, I often just dive in. I’m going to try not to do that again today.
GOOGL – Short – I set an alert here last week to let me know when it reached a recent support level — it reached a strong resistance area, and I thought price would drop from there, and wanted to know when/if it got to ranges I wanted to trade. I got the alert yesterday, but it was right before the market closed, and I wasn’t at the computer. Looking today, and this morning, it’s already made another strong push down, and has stopped at a support area that was fairly strong resistance a few times in the past. On the daily chart, I see a small rally from that point, so I’m going to look for entries on the 2h chart.
Immediate update: I looked at the 2h chart, and even dropped down to the 15 min. chart, and this dropped too sharply, it looks extended to me. If price rebounds to around $101 – $102, I’ll look to short from there, but I don’t see a pattern here — at least not on the 2h chart. I’ll set another alert here and maybe revisit later.
Update 9:16: I got the alert that price rallied, looking to enter a small short position here.
NVDA – Long – I made a good trade on this last week, but it was in my practice trade accidentally. Looking at this today, price has been pulling back from a spike about 4 trading days ago, and today, is sitting on a support level that was resistance last week. When I “missed” this last week, it pushed too much for me to consider getting in, in my main account, but this pullback might offer a perfect retest to take another shot at. I’m going to look for entries here.