5th December 2023

The market witnessed a nice pullback yesterday, with QQQ pulling back 1.7 ATR to its lowest point and SPY 2 ATR. Quite a few of the leading names pulled back more aggressively and entered temporary downtrends with PLTR possibly the most bearish.

There are still a few names setup today yet far less than the weeks prior, opportunity is much thinner and if the pullback and consolidation continues it’s likely less breakouts work. Again, I am not bearish, simply stating current market conditions.

China continued its descent following a Moodys downgrade. Investors continue to pile out of Chinese equities at a rapid pace as they reach 5 year lows.

Gold put in one of the largest stuffs in the past 50 years, a picture perfect Gap, Trap and Crap.

Semiconductors were among the weakest, with AMD and various others breaking below their 17 EMAs.

IWM and KRE continued their surge following Fridays large range expansion. A good signal for small caps and growth stocks, the rally is heavily supported with KRE’s strong price action.

$CHGG With a nice move from lows and back into an uptrend. 17% Short float and signs of accumulation.

$MPC Still sits with a lovely weekly/daily setup, whilst the sector remains weak. If we see some rotation this could lead to a great play.

$SYM Super strong name, great growth numbers, with a tight flag into ATH.

Overall market conditions are bullish, breadth is good and some stuff is following through. However I will be exercising a little caution today as multiple sectors and leading names attempt to head into a 65min and Daily downtrend (albeit likely short lived).