It is red hot tech industry investing. Many of the tech stocks beyond FANG are on fire lately such as BABA and something that caught my eyes in Roku. Roku has been consolidating in a down trend and thanks with the guidance of Rolando Santos I was able to scalp some shares on today's breakout.
The initial market open had Roku take off from $136 up to $140 while yesterday's close was at $133. The quick burst was something I went in to chase and bought around $139 only to notice overall market has nasdaq drop big while indexes all turned red. Within minutes Roku recovered from the drop of $140 to $136s and continue to climb for remainder of the day. I close out my trade a bit early afterward it initially hit $144 because I was worry with the overall market being weak it would mean tech stocks would also see pullback.
The opposite happened with tech stocks and Roku continue to climb just like many other tech stocks such as FANG and TSLA. Expectation for Roku is a continue rise from current levels and possibly hit over $200, however overall Nasdaq appears to be over extended why the spy and dow are significantly weak.
Do not often see that where it splits evenly in gains for Nasdaq while similar losses in SPY. The Dow took a beating with close to 400 point drop. Despite all this divergence the Nasdaq internals are weakening where fewer stocks is pulling up the index and GEX number is reaching close to a yearly high. Le-men terms the higher the GEX the less volatile the market, but contrarian thinking is that calm markets will likely lead to higher volatile markets because if it is at one extreme it will likely revert sooner rather than later.
Focus on high growth and see if I can scalp another trade similar to Roku while also be watchful of a breakdown in Nasdaq. As if it happens the overall sentiment in the market will likely be a lot of negativity. We are do for some pullback anyways and since early June the SPY has been slopping down. Looking also to go short in indexes via inverse ETFs such as SPXS or SQQQ but will not pull the trigger until things settle
