July 8th - DAILY Market update & Setups
Market update
QQQ
Nasty gap down open right at the 10dma, but got bought heavily in the first hour which is very positive.
Tomorrow will be very important to see if we have a follow-through from here. We can have a more volatility in the coming days, during which we can consolidate here or even go lower to test the 20dma.
This pullback was to be expected as I pointed out in my last Newsletter. Market was very extended at 5% from the 10WMA.
IWM
This is again a different story for the smaller capitalization stocks as we continue to lag larger cap and we slice through a couple of important level under the 50DMA.
For me, we are still in that box consolidation from mid-february top and as long we don’t breakout like QQQ’s did, we will have a lot of stock breakouts failing and chop action all around.
We tried to hold 221.15 level at EOD but buying was not impressive. For me, it still have everything to prove, and I would not be surprise that we retest 215.5$ lower consolidation level. There is also the trendline from the lows that seems to intersect that same level.
For now, trading very light and one position at a time for me.
PrimeTrading holdings
None - 100% cash
I don’t have any open positions right now. I’m waiting for the market to settle and testing the water with 1/4 or 1/2 position. If it stick and I have a good cushion (>5%), I will be open to carry it overnight. Otherwise, it’s gonna be a day trade.
Potential DAILY SETUPS
MRNA - Moderna
Was working in the pullback but I feel that today’s open was clearly an extension and there was a bunch of big guys waiting to buy 223 ish level. We’ve cut right through both the 10 & 21DMA and jump right back up from there on above avrg volume.
Buyable at the open
OSTK - Overstock.com
Might need tomorrow to confirm the move, but I like how we gapped up this morning considering the red market open. We clearly rejected the 50DMA on big volume.
There has been an upgrade to 150$ per share this morning that trigged that move, so it could be a good catalyst to finally breakout out from that multi months consolidation.
I would buy at the 92.5$ pivot break
RRC - Range ressources Corp.
Open flat with that market gapped down, that’s showing good Relative Strength to me (RS). We had a good push this morning but faded all afternoon. It might be a retest of the 16.28 level and tomorrow I would like to see some continuation from here.
Entry at 16.87$ pivot break
TBIO - Translate Bio
I like the price/volume action around this very important level from last summer and dec 2020 top. We tried to breakout early this week but got stopped and retraced back on 2 very light volume days this week. We found support at the 10DMA right at that 28$ pivot today on increasing volume.
Entry on 29.7$ pivot break
CDMO - Avid Bioservices inc.
I like this tight action consolidation after a breakout while the 10DMA is catching up.
Agressive entry at the open
Entry at 27.02 pivot break
BTU - Peabody Energy Corp.
We had 2 very solid day for this name. After trading in/out for quick gains due to market conditions, I would be interested to get a bigger move after this very positive action.
We brokeout yesterday and tested our BO level & 10DMA at the open this morning.
Entry at 9.76$ pivot retest
STAR - iStar inc.
New name from the 52w high scan. Volume profile is very interesting and would be a buyable setup right here after a solid 10DMA retest and new high today.
Entry at open
Enjoy & be safe! 🍻