As the three indexes linger near an all-time high (ATH), and with YM and NQ squeezing on the daily charts, the goal this week is to be very patient and see which way the market goes. Right now we are seeing clear rotation into YM and out of NQ to start the week, which is causing ES to be at a standstill. Every trading session we will get a glimpse of how they are rotating, and with these big picture squeezes, patience will pay off for the bigger move.
Just like last week, the 4-hour Ichimoku Cloud is the best compass for if/when the market could start to roll over. As long as the price stays above, the market can continue to squeeze or breakout higher. Be weary of “Sell in May and Go Away,” but also be ready to attack on the best opportunities each day. We’re keeping things tight with no plans of swing trading unless the market leaves current range, either above or below.
Here is our focus list for the week:
NVDA – Keeping an eye on descending wedge and reversion to the mean (RTM) while also watching for a bounce near 591 and breakout through the wedge back toward last month’s point of control (POC) of 619 and staying in a range between 619 and 626
FB – Looking for a big gap fill below or it can hold with a 2-hour squeeze then go for more with ATH above. We’ll be watching for a bounce at gap fill, but also be ready to short.
GOOGL – Watching a gap fill below just like FB and keeping an eye on bounce or short. Chart is looking very extended so we need to be mindful as stock could benefit from RTM and gap fill.
SQ and ROKU – Earnings are coming up for these stocks, so we will keep an eye on them but most likely wait until Friday to take any action
Stay Focused!