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Nasdaq takes an unpredictable turn, opening with a notable upside gap despite its earlier failure to close the preceding downside gap.

NVDA also experienced a turnaround from recent downtrends, showing a small morning gap followed by trading into a larger gap, establishing pivotal levels.

Similarly, the DOW saw a significant percentage gain following a morning surge in liquidity.

Let’s dive into the charts! 

* MARKET INTEL *

Triple Q’s

The Nasdaq failed to fill the gap below, instead opening with a similar-sized gap to the upside in a volatile session, breaking out of the falling wedge to close above the 482 level.

If it can hold above, expect a move to the 490.7 level.

* NVDA *

NVIDIA Corp

NVDA breaks out of a week-long slide with a small gap this morning, trading into a large gap that created 2 levels.

Closing with bullish candles respecting a trendline, it looks primed to break above 124.5 and into the supply zone above.

* DJI *

Dow Jones

The DOW closed up a percent after a large liquidity grab this morning, forming the 54.5 level.

Trading in a nearly completed rising wedge, it looks primed for a correction to at least 53.5, closing with bearish candles.

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* MARKET INSIGHTS *

Economic Vibe

Movers & Shakers

• CrowdStrike Holdings Inc (CRWD) -13.461%

• IQVIA Holdings Inc (IQV) +9.2%

• ON Semiconductor Corp (ON) +6.618%

* HEADLINES *

Top Reads

• Nvidia, Chip Stocks Power Market Rebound (WSJ)

• A Clamor for Generative AI (Even If Something Else Works Better) (WSJ)

• Stocks to Watch Monday: Verizon, Truist, Nvidia, CrowdStrike (WSJ)

• McDonald’s to Extend $5 Meal Deal, Citing Customer Traffic (Bloomberg)

• Why Delta is still canceling flights as other airlines return to normal (CNN)

• Google parent Alphabet to report Q2 earnings Tuesday with AI, ad spending front and center (Yahoo Finance)

• Why Tesla Stock Popped Ahead of Earnings Day Tomorrow (Yahoo Finance)

* IDEA *

15-Minute Strategy

KEY POINTS

• Recognize common patterns like flags, triangles, and double tops/bottoms.

• Choose indicators that complement your strategy and avoid clutter.

• Stick to defined trading windows and avoid over-trading.

• Set stop-loss levels and adhere to them rigorously.

• Stay updated on market trends and refine your strategy accordingly.

* WISDOM BYTES *

Resilience and Adaptability

In life, much like sailing, we encounter forces we cannot alter or predict—these are our "winds."

They represent external factors such as market volatility, economic shifts, or unexpected news.

Trying to change these factors is often futile and can lead to frustration. However, what we can control are our responses and strategies—the "sails" of our metaphorical boat.

Adjusting our sails means being adaptable and responsive to market conditions.

Just as a skilled sailor changes the angle and trim of their sails to harness the wind's energy optimally, a successful trader adjusts their trading strategies and risk management techniques to navigate the ups and downs of the market.

* DAILY DOSE *

Memes of the day

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