QQQ
Strong bounce in stocks today where they are now reverting back to their mean.
Aside from maybe a 1-3 day bounce, there isn’t anything meaningful happening. Some stocks are rallying to their declining moving averages, just like the index, other stronger names like the optics, cruise lines, transports are continuing higher.
It’s a very small pocket of the market that is somewhat strong. The only issue I find during these times is once the index gets to rallying into their declining moving averages, those stocks start to encounter some friction.
Taking it day by day, if we stay in this sort of chop then it is easy to scale it down to meaningless size and try to get traction. If we push into the declining MA’s and start to roll back over then there’s a chance we may visit the 200d.
What I did today
Mean Reversion.
IREN was on watch for a potential mean reversion trade. It flushed right in the morning and used the first 5m bar break to enter half of my shares. Then added as the stock was being supported at vwap. Sold 2/3 once there was a 5m lower low intraday. Keeping the remaining 1/3 for a potential test of the 10/20 ma.
IGV is an ETF that has been beaten down during the pullback as there are fears AI is ‘eating SaaS’. Entered a bit late after it crossed vwap on half of my position, then added once it started working and saw it broke HOD. Stops LOD. Willing to add in the future.
Prints:
Equity + Holdings:
Outside of that opportunity today, there isn’t much I’m looking forward to on executing. The main priority is to not draw the account down, and keep it healthy for the next bull run. Those are the times I experience less friction in swing longs. Still showing up every day to scan, manage my watch lists, and refine my edge.
The only real stock I’m willing to watch for a long is Sandisk. I think there is potential for a parabolic flag that is currently building in this stock. When something is this extended though and setting up to breakout, I typically want to be a lot quicker on the sell button to exit my shares as trying to trail this with an MA is irresponsible. If it doesn’t trigger and goes lower, then no harm no foul.
