Despite earnings misses from both AMZN and AAPL, two of the most important stocks in the market, nothing could stop the Nasdaq (QQQ) this week. The big question at this point is what will it take for this trend to end or at the very least pullback to the 21 exponential moving average (EMA).
The combination of exhaustion of bullish momentum and sell signals can bring a roaring market to a screeching halt, and there are neither of those to be found on the indexes right now. While we are certainly due for a pullback, we are not looking to fight this trend and instead are looking for opportunities to catch continuation of this momentum.
One of our favorite trends here is GOOGL, which quickly rallied to a new all-time high (ATH) after earnings. Into today’s close, we built a long position in the 30-minute squeeze, and we’re looking for a move into $3000+ next week. The structure of the 30-minute squeeze fit all of the same criteria that we look for in a daily squeeze – with positively-stacked EMA’s, green 10x bars, and a positive histogram.
The key with this market has been to look for these ‘moments in time’ but on lower time frames. While waiting for a retracement to the 21 EMA is a good game plan in a normal market, we are not in a normal market here.
Until the party ends, we’ll be looking to pick our spots wisely in leaders like GOOGL in an attempt to catch the continuation of this crazy momentum.
The squeeze is a versatile setup. You just have to know where to look! With that being said, be sure to join us for premarket prep Monday morning at 7:45am Central on the Focused Trades YouTube Channel, as we’ll be running scans for lower time frame squeezes together.
Until then, enjoy your weekend and we look forward to getting back to work on Monday!
Stay Focused!