A Rest Day
The News
There's not much news today as the NVDA and SMC craze begins to cool off. Both stocks print an inside day today as the buying fever lets up.
NVDA forms an inside day at the 1.618 Fibonacci extension.
SMCI also put in an inside day as buyers defend the 8-day MA for the third day in a row.
In other AI news, Google is being pressured following criticism of the company’s Gemini AI product. This chart now shows a trendline support break, and the stock looks susceptible to further downside.
GOOGL opened near the 50-day MA before it broke down from the consolidation pattern. Now, it is below most of its key moving averages and trying to find support around the October low AVWAP. If that doesn’t work, the 200-day MA is down near $132 for some possible help.
The primary driver of economic news this week is PCE data, which will be announced on Thursday. That measures key inflation data that the Federal Reserve uses to temper its rate decisions. It will be heavily watched and market moving.
The Markets
In the broader view, markets are a mixed bag today, with SPY and QQQ falling while IWM has a positive day and stays above $200. Bitcoin is the real leader, up more than 5% today after giving the “shake and bake” pattern anticipated Thursday.
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Let's go to the charts.
The Charts
SPY Rest day. Not much else to say. A mildly red day above all the key moving averages and pivot levels.
QQQ same. A rest day just under recent highs but above all the key MAs.
IWM is trying to come to life as buyers rotate into the small cap space. This is the healthy, bull market action we want to see on a day when big stocks take a rest.
DIA Rest day.
TLT gave some follow-through to Friday’s rise before getting rejected at the 21-day MA. It remains range-bound with a slightly lower bias.
DXY Also, a rest day.
BTCUSD, while stocks mostly rested, Bitcoin awoke from its nap, adding gains of 5.5% on the day so far. There is no lack of risk appetite here.
The Closing Bell
There is your start of the week.
Be sure to watch for Thursday's update as we examine the effect of PCE and earnings throughout the week.
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The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”), an SEC-registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent that person’s opinions only and do not necessarily reflect those of T3TG or any other person associated with T3TG.
Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual, or it may reflect some other consideration. Readers of this article should consider this when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors before making any investment decision.
POSITION DISCLOSURE
February 26, 2023, 4:00 PM
Long: ADIL, CVNA0315C70, ENPH, GS0315C400, IBIT, IWM0315C205, METC, QQQ0301P430, XBI0315C100
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike