Although I trade futures, I do some stock scans here and there looking for trade opportunities on the daily time frame. I always keep track of the Monsters Of Tech (MOT) which drive the NQ. I use to call these stocks, the four Horsemen of Apocalypse (AAPL, MSFT, AMZN, GOOG). These days, there happen to be more than four stocks that can influence the NQ. Add in FB, NVDA, and everyone’s favorite cult stock TSLA. As a side note, TSLA will not be included in the SP500 index at the end of this month. There was rampant speculation that it would be introduced into the index which caused many traders to front run the possible news. When the bad news was released on Friday after market close, the stock promptly dropped 6% in after hours trading. It will be interesting to see if the selling persists on Tuesday.
Looking at the MOT charts, all of them bounced hard off monthly support levels. They also closed at the upper end of the daily range as well. This is bullish. There are definitely traders willing to buy the dip. The bull is far from dead. I would expect a test of the gaps created on Thursday.