Please refer back to our weekend analysis in Linkedin. We have already established that we are bullish. Today we are going to look at the lower timeframes. The above is the 1 hour chart of Nasdaq. We have been in consolidation as shown in the chart. Whenever we have consolidation, we look for manipulation. In a way, this manipulation has already happened in the form of a double purge. We have had a buyside purge at the top of the consolidation and a sellside purge. Now if we can close above 29630 on a hourly basis or ideally the buyside purge at 29730, then there is a good chance of big move higher. The invalidation of this double purge idea would be the price going below current consolidation lows.
To be honest because of our higher time frame bias and also our premise which we have taken that the market will be trading higher into the Anthropic IPO, barring a significant geopolitical event, means that we will entertain a bullish bias only and look for buy setups even if the double purge idea is invalidated. We however go to sidelines, if we have clear close below 29050.
We also have diverence between the Nasdaq and S&P 500. which suggests that Nasdaq is much stronger market which means that XLK and MAG& are leading. So we are overall happy with our positioning. This divergence in lower timeframe is again for short term view only and will be invalidated by the price action above.
The stocks that we identified over the weekend have all done well and our only wish was that we were not positioned more heavily enough. But we have added to some positions and we are ready to add to our positions if we have a pullback in the next 2 days. we will only focus on the stocks which we have identified at Muffett investments.
All analysis done in good faith and not investment advice.
