From Euphoria to Reversal: A Wild Finish to a Powerful Week

Selling partials into strength proves key once again.

Key takeaway: Ignore feelings of elation and trim into strength

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A powerful week in the markets ended with a twist.

Friday closed with reversals across the major indexes and many leading sectors.

Are we in for a well-deserved pause?

Reversals were the theme of the day. Bitcoin-related names were absolutely on fire early in Friday’s session—only to get slammed with a swift and significant intraday fade.

Crypto, quantum, software, nuclear, autonomy were the hottest themes dominating the strength this week.

Many of the stocks that posted reversal extensions may need some time to digest and firm up. After a week like this, that's not just expected—it's healthy.

In The Trading Room, there were no champagne corks or high-fives.

Instead, we stayed focused and disciplined, using that early strength to lock in two well-timed trims in COIN and CRCL. That discipline paid off fast—both stocks gave up most of their morning gains shortly after.

Earnings season is approaching, and I’m getting excited for the next crop of market leaders to emerge. The treasure hunt rolls on.

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Tonight, I’ll be breaking down:

• HOW and WHY we take partial profits into strength

• Hot themes/leading stocks to focus on

• Stocks setups to watch for Monday — pullbacks the focus

• Earnings season ramps up

• Portfolio & Index review with levels to watch

• Market Breadth, internals

• Refreshed watchlist

Let’s go!

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QQQ

QQQ saw a fantastic week, including a beautiful breakout to new all-time highs.

We finished the week with a reversal day, which could easily be some profit-taking ahead of the weekend.

The market continues to grind higher and is refusing to close below the rising 5 SMA—an incredible sign of strength.

The market tailwind is at our backs, and these are the environments where we want to let our winners work and be a little bit more aggressive.

The 65-minute chart: A great trend here, despite a solid shakeout

SPY

SPY had a constructive week as it was able to make new highs but not exactly push away with conviction.

The index has been trending very nicely, yet we have seen volatility increase a little in the last couple of days of trading.

Many elite names in this market have made big extensions and may now need some time to rest.

I think an index pullback to the 21 EMA would be an absolutely incredible buying opportunity for us and something that I am very focused on.

For now, we stick to the plan and respect the trend above the rising moving averages.

IWM

IWM saw quite a volatile week, as it went from breaking out to shaking out, ultimately closing pretty tightly on the weekly chart.

We are clearly seeing a bit of volatility, which could also be considered distribution, so I believe we have to operate with a little caution into early next week.

The big pivot remains above at 230, and let's just see if the markets can hold the short-term averages for now and work their way up toward that level.

ARKK

ARKK was incredibly strong as it continues to power ahead on this incredible move.

We have been stalking it for a clean entry, and it is not willing to rest at all.

The list of top holdings is nothing short of incredible, as we are seeing many of the market’s leaders in the top 10. I am going to continue stalking an entry here.

Gold

Gold had a very quiet and choppy week but closed fairly tightly on the weekly timeframe.

It looks like it wants to hold above the moving averages for now; however, I don't see the chart progressing to the upside until it can take out 2391 with conviction.

We continue to simply observe it.

Bitcoin (long)

We will see how the week concludes, but so far it's been a pretty choppy week for Bitcoin.

We saw an attempted pushout on Monday that was squashed, and since then, price has just been chopping around above the rising 10 EMA.

I do not believe that we are seeing anything wrong in this chart so long as these short-term moving averages hold.

For now, the breakout continues to hold and is working nicely—let’s see if we can see more contraction on the right side before a potential move higher.

We remain long, and I am still very much bullish here.

Long from 106,618

USD

The dollar challenged the 50-day moving average this week, and we will wait and see if it can break out next week. For now, we’ve seen rejection at this key level, but it continues to knock on the door.

TNX

10-year yield looked very threatening early in the week before cooling off as the week progressed.

For now, the breakout has found itself retesting the moving averages, and we will wait and see what happens into next week.

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Our market indicator

Remains on a GREEN signal.

Another solid day of net highs, looking are impressive. The trend continues to persist!

Qullamaggie indicator

Our Qullamaggie indicator remains RISK ON.

This week we saw the 10 EMA tested, but it held up powerfully, and the market was able to hold on to its green risk-on signal.

This has been many weeks of a beautiful trend now—let’s see if it can continue. The wind is at our back, and we have great momentum from the index pushing us.