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The only people that are happy with this market are short-sellers, intra-day traders and your grandmother, who probably owns a bunch of utilities and consumer staple stocks.
Today’s selloff was pretty nasty. It brought the Nasdaq 100 deep below its 200-day moving average. V-shaped recoveries typically don’t happen below a 200-day moving average. Selloffs like these take a much longer time to heal.
On today’s show, we took a look at some important technical levels and shared some trading ideas. Howard has a list of stocks and indexes he wants to buy on weakness – TEAM, OKTA, AAPL, TQQQ, SPY. Since correlations are extremely high in corrective markets, I rather focus on trading 3x ETFs intraday. My go-to trading vehicles in this market are TQQQ and LABU (and their respective opposites: SQQQ and LABD).
Don’t forget to check out my latest book: Swing Trading with Options – How to trade big trends for big profits.