May 21st, 2024

Momentum is slowing, waiting for NVDA. Yesterday, the bulls had a good morning, but then momentum stalled, and we pulled back. Once again, buyers quickly stepped in on the selloff.

This is expected as we have the world’s most important stock with earnings coming out tomorrow, and no one is too interested in buying into rallies, just stepping in to nibble on weakness.

I expect today to be a similar type of day; bulls will try to take us higher, and if they can’t make much progress, then we may pull back again, and I expect buyers to emerge.

Technicals remain heavily in favor of the bulls, and I continue to keep an eye on rates even though I think they’re range-bound for now. We’re in a period where Fed Speak is highly anticipated, but doubtful it changes much of what the Fed Chair has already said…we wait for more data. Which in many ways is good for traders, as rates are unlikely to move too much to have much of an impact on Equities.

We feel like we’re full-on in summer markets already, and this is a tape where many can overthink it and overtrade it. Pick a side, wait for the level to get tested, watch the reaction, and trade accordingly. Overtrading will crush traders in this market.

Small and smart.

Cheers, DELI