Trading Relative Strength

A Fading Nasdaq Rally

Last week was a short and quiet holiday week. This could be the reason for the softness in the Nasdaq, but there are a variety of other factors as well, including:

  • The lack of a short squeeze when the put/call was extremely high due to shorts holding out
  • Additional shorts coming in at resistance and being right
  • Upcoming bank earnings anxiety
  • Tesla deliveries numbers + reaction
  • The Nasdaq hitting extension targets
  • …and more!

But the Nasdaq rally and the idea of a bullish move into the April earnings season aren’t totally dead. Weakening, yes; dead, no.

Semiconductor Relative Strength

The reason for this is due to the strength seen in semiconductors. The semis are generally a space that leads the market to the upside or downside. And right now, the semiconductors are demonstrating that they have pulled back and are bouncing right back up. Relative strength tickers are leading the way higher, including Advanced Micro Devices.

Want to learn more? Check out the video below with my complete analysis of the semis and AMD!





P.S. Want to learn more about my Earnings Hot Zone, where all of my earnings analysis is done? Check it out by clicking on the banner below!

Up Next...

‘Tis the Season: Stocks Splits

Nvidia Stock Split: A Recap Nvidia (NVDA) announced its stock split on May 22, 2024, and since then, it’s traded from a (split-adjusted price) of around $95 to a new, all-time high at $129.74 (as of this writing). It’s still going and is currently up another +2% four days after the split, making it significantly … Read more

Read More

Bullish Setup in NFLX

I’m eyeing NFLX for an entry to the long side before the next upcoming earnings report in July. Check out the video for my upside targets, setups, and various options trade ideas.   P.S. To join us in the Simpler Central trading room, click this link to learn more!      

Read More

Trading GameStop for a Pre-Earnings Short

Hey traders! GameStop has 25% short float, and Roaring Kitty has thrown massive fuel on the fire right before earnings. With GME trading higher on high volume, and breaking through levels of previous highs, that sets it up for a potential short squeeze pre-earnings. GME will typically trade higher before earnings, as buyers speculate and … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now