Tonight’s gap down in the market is going to leave more broken charts in its wake. Going through my scans I see relative strength in Financials/ Banking names, but most are short term extended. $JPM $GS $CIB $WFC etc. Next, I see some relative strength in Chinese equities $BABA $FUTU $JD $KC $LX $XPEV. It’s a group I will keep a close eye on going forward. Software names are also a place to keep a close eye on. I believe that’s where the second wave of AI potential takes us. Names like $CRM $CRWD $DASH $HOOD $META $PLTR $RBLX $RBRK $RDDT $SE $SHOP $TSLA $TWLO are all worthy of a spot on your watchlist. Please remember, if you are swing trading, that not every day is a great day to open a position. Use progressive exposure and align your buys with a healthy market. If you buy a breakout over prior day highs, that name is much more likely to work when the underlying market is over the 10/20sma or immediately following a “follow through day.” Even though I continue to track relative strength there is very little for me to do in this environment. This is the 1 step forward and 2 steps backward environment for swing traders. If anyone has any questions regarding position sizing, entry tactics, or using progressive exposure to get back in the market please do not hesitate to reach out using PMs in IU. This is not me saying that a great environment isn’t just around the corner, but when 2/3 largest companies in the world are below the 200sma $NVDA $MSFT and $AAPL just got crushed on earnings it’s safe to say that swing traders will likely just be spinning their wheels from here. Stay patient for the environment to change or shorten your timeframe. Swinging short is also an option, in which case we want to focus on names already in a stage 4 decline. $ANF $ELF types. It’s even possible that semiconductors or $BTC related names make for swing shorts as well. It’s not often that prior years leading groups continue to lead the next year so keep an open mind and make sure you are scanning. The job isn’t to always click a buy/sell button, that’s the easy part. The job is to figure out where money is going and where money is leaving. Any questions please reach out.