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!

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