Sep. 11 at 1:35 PM
Yesterday, @VPA asked me about
$NET — one of my trophy positions, and a name/company I’ve liked for a long time.
Price is sitting at new ATHs and pressing into clear resistance zones.
What’s less obvious is momentum: the weekly and monthly stochs are in the 90s and RSI in the 70s. That’s hot. And while overbought can stay overbought (just like oversold can stay oversold), this is the kind of setup where corrections can come through price and/or time.
And it’s not just
$NET — I’m seeing similar stretched momentum across a huge portion of the market.
Here’s just a quick scan of names at or near this same 90/70 zone on the either or both the weekly/monthly charts:
$SPY,
$QQQ, IWM, ARKK, KWEB, GLD, MGK, MAGS, SOXX, XLG, XLF, XLI, XLK, XLY, XLC, XLU, AVGO, AMZN, NVDA, CYBR, RBLX, SOFI, NFLX, META, BLK, C, GE, GILD, GOOGL, GS, HOOD, JPM, KTOS, MA, MP, MS, MSFT, MU, PSTG, RTX, LHX, SCHW, SE, SFTBY, SPOT, T, TCEHY, TSM, UBER, VCTR, WFC, WMT, ABBV, BABA, BAC, BIDU, CVS, JNJ, LOW, LYFT, PLTR, RKT, SONO, TER, U, VLO, RDDT, SHOP, GRNY, MDB, RIOT, WYNN. And plenty more with similar setups that aren’t even high-beta MOMO names.
The market is hot, and that strength is real... but it can’t stay “too hot” forever. Sometimes that cool-off comes from price pullbacks, other times from sideways chop while indicators reset. Either way, we need to get the porridge just right again.
