“Hey Joe, where you goin’ with that gun in your hand?” Hey Joe, Jimi Hendrix
Maybe Trump will nominate Clint Eastwood as Fed Head?
I mean, he just named Sly Stallone as a Kennedy Center
Honors.
Yesterday I tweeted that Wednesday was one of the craziest, most discombobulated days I’ve ever seen.
The good became bad and the bad became good..
Allow me to explain.
Momentum winners had the rug pulled while laggards ripped.
Many, not all, Generals were ambushed on Wednesday morning.
For example clear continuation long plays such as our META, CLS and CRDO followed thru briefly
From the open.
Briefly. Then all hell broke loose.
Below is a 10 min CRDO . Fortunately we locked in gains before the crimson tide.
It gapped open at all time highs then quickly triggered a Jump the Creek sell signal.
A down ORB quickly followed.
We tweeted that CRDO hit a little daily rising trend line near 116.
It rebounded to 122.
META broke out of a Bull Flag on Tuesday and reversed. Our trailing stop saved us on the balance of our long swing.
CLS was a long “Overnighter” trade on Tuesday.
It “came out” on the open and again quickly reversed.
We sold some pre-market and our trailing stop saved us as CLS shed 9 points, turning a good Cup and Handle pattern into a bad reversal.
Ditto our OKLO long, it was set for continuation and gapped open and we sold into the push higher
Before it too reversed.
HOOD, RBLX, COHR and FN are momentum monsters that also caved in on Wednesday
Check out the size of the reversal bar on FN…an LR 7. The largest range in 7 days.
Not all momentum monsters got sent to the woodshed.
RDDT, AMD, EBAY continued to push higher.
“Bad” names that got some love were:
WDAY, TEAM, LULU, CROX< ADBE and TWLO to mention a few.
Many big “bad” names in well-defined downtrends were not invited to the Bounce House
They continued lower.
Names include NFLX, SHAK, DDOG and MDB to mention a few.
The momentum unwind gained steam right after the open.
The divergence between 12 month winners and losers widened to 4.25.
IWM was at session highs vs SPX at session lows mid-day.
“Low quality” and “value” were being taken along for the ride with laggards.
“Non-profitable tech” was a standout performer as well…this is likely related to rates and “risk-on” rotations as mega caps and AI are used as a source of funds.
An hourly QQQ shows the reversal from the get-go followed by a Jump the Creek on the heels of a down ORB in the first half hour.
The QQQ 3 Hour Chart turned down right off an all time high followed immediately by two hourly higher highs producing an hourly Minus One/Plus Two sell setup going into today.
A 3 point hourly trend line for August ties to the 20 hour MA at the 578/579 region today.
Breakage of the trend line opens the door to 575. Below that 570 OpEx Pinball to the 50 hour MA
May be on the table.
In sum, the Q’s left a Gilligan’s Island sell signal with 560 being 90 degrees down from Wednesday’s record high