Market Momentum Edition | Tech Breakouts Ignite

Originally aired: . This recap discusses market conditions at the time of the appearance.

Good afternoon, traders. Price action in the Nasdaq is a bit quiet today after a strong move off of the 200 SMA on the daily chart. The technical setups I’ve been tracking are finally breaking out and recovering well. Yesterday’s 3% surge in the Nasdaq confirmed the directional shift post-Mag 7 earnings. Let’s discuss…

Nasdaq: The 50 SMA Breakout I’ve Been Waiting For

The Nasdaq Composite has already cleared July highs and the 50-day simple moving average on the daily chart. That’s a high-conviction buy signal. I prefer the 50 SMA over the 200 SMA because it’s typically the last stand for the shorts and where they throw in the towel. Nasdaq futures are now eyeing a break of the 30,000 level. This is a difficult level to breach, as it needs a solid catalyst and strong momentum, but if and when it breaches, and we see price hold above it, this will be the ultimate Nasdaq long signal. This is one of my favorite long setups in the index, and it sets the tone for the individual names below.

Check out my segment on Charles Payne yesterday, below, where I discussed everything included in today’s newsletter.

PLTR: The Weekly Squeeze Finally Explodes

This is exactly what Charles Payne and I discussed a few weeks ago on air. PLTR spent months consolidating in a tight weekly squeeze that began in April. The pressure built on the pullback, and all it needed was a catalyst. Pre-earnings excitement wasn’t enough, just like we saw with MSFT and AMZN, but the earnings print itself was the spark. The move was more than 2× the expected options-market move, a classic post-earnings momentum setup that can run for a week or longer. 

On the breakout above $150, PLTR cleared the 200-day SMA—my primary buy zone. Secondary resistance sits at $165. Once that level gives way (and it’s nearly there), the path opens toward the prior high at $207.52 and then $250. 

PLTR exploded post-earnings, and upon the recovery of the 200 SMA, it is likely to continue higher. Perhaps not immediately, but longer-term.

How I’m playing it:

I’m buying more shares here. The long-term technical structure supports it. For options traders, selling put credit spreads or buying longer-dated calls both work cleanly with this setup. The combination of the multi-month squeeze release and the oversized earnings reaction makes this one of the cleanest risk/reward opportunities on the board right now.

Other Positions & New Entries

  • NBIS is coiling right at the edge of a breakout. I’ve been steadily adding shares on this drawdown—exactly the kind of quiet accumulation I like before the move.
  • I remain long ALAB and AMD via shares. No change.
  • Yesterday’s NVDA and DELL buys in the Mastering the Trade room are already looking excellent.
    • DELL first target: $500, then $533.
    • NVDA targets: prior highs near $236, followed by the $250–265 zone.
  • I’m also adding Broadcom. The breakout above the 50-day SMA is complete, and the stock is already up 6%. Plenty of room remains toward $495, then the $550–580 area.
NVDA entered the Earnings Hot Zone below resistance, and I entered a long trade on the breakout as posted in the Mastering the Trade room.

Bottom Line

I’m seeing coordinated strength across the mega-cap and high-beta tech complex. The Nasdaq’s 50 SMA reclaim, PLTR’s weekly squeeze release, and the clean technical follow-through in NVDA, DELL, and Broadcom all point in the same direction.

 Stay disciplined on entries, respect your levels, and let the charts do the heavy lifting. 

Trade well,

Danielle Shay

 

 

 

This newsletter is for educational and informational purposes only and does not constitute investment advice. Always do your own due diligence and manage risk carefully.

 

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