10/14/2022
If you ask me, yesterday’s price action in SPX looked like a short covering.
Of course, algorithmic buy programs were turned on and voila, stocks started moving again…
(Did you take a position in NUTX? It ran over 100% yesterday from the open!)
I’m curious as to just how long this rally lasts considering how abbreviated the rallies have become… which makes for magnificent rug pulls:
What stocks are consolidating or moving up when the market is falling?
Check out Athira Pharma, Inc. (ATHA):
I want to emphasize a few things on this look as it’s been cooking for a few months and I believe it to be nearing “done”.
Some of it you’ve seen before, but there are a number of nuances worth noting…
What originally tipped me off to this was a sizable buy from one of those “astute” politicians… and the current share price is just below their price.
Nonetheless, I liked the chart for a bottom play.
The first thing is you see the reaction from the low around ~$2.50 in which the share price jumped higher to $4.24.
Since then, it’s settled into a sort of Whiplash/ABCD pattern and is settling into the low $3.00’s.
The gray box is the current range which isn’t yet Support nor Resistance.
On the lower chart, the second indicator — the updated Alpha Waves tool from Chris Hood — is giving us three green dots and the composite Stochastic on the tool is pointed higher. It’s also right at the zero line.
The tool has also printed multiple green arrows on the upper chart which are momentum oscillators… sneaky stuff.
Now, the two white arrows mark a Bullish Divergence which has been a go-to in this market.
On top of this, the Cumulative and Relative Volume tool built by Chris Hood has been circled in white, showing a great deal of quiet activity…
Lastly, the Short Volume (checkered flag) is essentially dead.
A move over ~$3.70 on Volume and the share price could pop to ~$4.35+.
Under $2.50 and I’m out.
Oh. Did I mention it closed above the 21ema?
Keep moving,
(Disclosure: I am long ATHA.)
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
