The Nasdaq is pulling back today, which, in my opinion, is a much-needed move. With the extended market, buying anything with an edge was nearly impossible. So, while pullback days aren’t as much fun as when the market is roaring (unless you’re short), I use them to identify opportunities.
In this case, I’m looking at lower time frame squeezes set up for longs when the dip stops dipping. I’m looking for tickers that hold critical moving averages on the daily chart (generally the 21 or 34 EMAs, but I like buys at the 50 SMA as well) and then trigger to the upside.
One of my favorite tickers to buy the dip in is Microsoft. We have a few signals that it may be time, but they aren’t all there quite yet. I’d love to buy the dip with the four-hour squeeze and then trade this ticker into $380-400.
Check out what I’m looking for in the video below: