Hey Market Pilots,
February 16 was the day the music stopped for the high beta names that made me millions last November.
It was a wonderful time as the fear of missing out (FOMO) was in full force and investors were trying to chase the agenda of the new presidential administration. Since then, those names that also make up all of the Ark Innovation (ARK) exchange traded fund (ETF) have been dwindling month after month. How far down would they go? Would they ever come back? Was this a one-time thing?
I was on the mic in my Moxie IndicatorTM Mastery room all yesterday teaching and going through charts. The work gave me the time to see some new developments. A great part of being an educator and running the Moxie IndicatorTM trading room is that I have to speak and show what I am seeing constantly. The feedback loop is great at bringing things to your mental forefront that may otherwise go unnoticed.
Yesterday was one of those “realization” days as I finally saw some green shoots in those old favorite high beta names.
What I am seeing right now is that these stocks seem to have found their initial support point and have started their first bounce off the lows. Most of these support areas line up with the monthly 10 simple moving average (SMA) and weekly 50 SMA. Pretty typical higher time frame support lines.
Aqua Metals (AQMS, pictured above) is a decent example of this action. Some aren’t as precise, but the idea is there if you know what you are seeing. I spent several hours talking and demonstrating this to the Moxie IndicatorTM traders and showed them how I was seeing it through the lens of the Moxie IndicatorTM Stock Method.
I have to say, it was pretty cool to watch this unfold and this is the stuff that gets my passion for trading fired back up. Especially after several months of inaction with the sectors.
Now, this doesn’t mean to go pile in and hang on. There is a process to how stocks bottom and start new uptrends. It takes time. But there are definable setups within that process that I can show and guide traders into and out of.
Dare I say we might be seeing the light at the end of the tunnel from this multi-month pullback? We will find out one step at a time.
Your Profit Pilot, TG