📈 Stocks Reversing

Watch this pattern we are seeing develop...

Stocks Reversing

Monday was a tough day for the market, rallying up in the morning only to drop SPY 1.25% for the day and QQQ 1.65%.

We are seeing a concerning pattern developing in key stocks. Let’s take a closer look.

Examples

Let’s start with Goldman Sachs. GS released strong earnings and gapped up in the morning and flipped key levels only to reverse and close at the low of the day.

This shows that even after good news, institutions are dumping stocks. This is concerning when we see good news followed by selling during trading hours.

Next let’s look at Apple. The stock reversed higher last week and then was met by the 55 SMA and rejected viciously. Institutions used the pump as exit liquidity.

We also saw Coinbase fall and this provided us with a perfect short opportunity. It rejected a key level similarly to AAPL after running up. We also saw that COIN was moving higher while the underlying asset, BTC, was breaking down.

This negative divergence gave a clear signal that this was a short candidate and we did well with puts in the Alpha Chasers community.

I share my outlook on the market and stocks I am focusing on in the video below: