The bulls fought back with vengeance this week, reclaiming structure to the daily chart. At this point, the weekly and daily squeezes in the indexes look poised to take us to new highs into the end of the year and early 2022.
One potentially powerful setup we’re seeing right now is the “triple squeeze”. This occurs when a stock is in a squeeze at the same time as squeezes occurring in its sector and the overall market.
One example of this is NVDA. It’s currently printing a daily squeeze, right along the SMH (Semiconductor ETF) and the overall market, the SPY and QQQ. Other examples of this currently are MSFT, GOOGL, AMZN, and GS. These triple squeezes will be our major focus into the end of the year.
Remember the domino effect at play. If a daily squeeze can fire, it can trigger the 3-day squeeze in the process. If the 3-day squeeze fires, it can potentially trigger any squeeze on the weekly time frame. Momentum on momentum. AAPL is the poster child of what can happen when nested squeezes form (a move we took full advantage of).
The major indexes, big semiconductors, and big technology are squeezing. Together this could offer one final big push into the end of the year. We’re still holding swings in AMZN, QQQ, and AMD and are looking for our next spot to add exposure.
Stay Focused!