The Dow lost more than 1,100 points yesterday.
Meanwhile, Snowflake (SNOW) made a new 52-week high that same afternoon.
The Nasdaq was sliding into a correction… the Fed had everybody sprinting for the exits… and this thing just quietly hit $282.90 like none of it was happening.
I sent that chart out on our Wakeup Watchlist Tuesday morning. The day before.
Here’s what I was looking at…
Snowflake had one of the prettiest cup and handles I’ve seen in a while. The cup is that long, rounded base where a stock bottoms out and grinds its way back. This one had been building for weeks.
Then you get the handle, which is the last little pullback before it goes, and its whole job is to shake loose anybody who can’t sit through a little wiggle.
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I had squeezes stacked up on multiple time frames too… The daily and a bunch of the intraday charts underneath it.
When you get compression across that many frames at once, it means volatility has been wrung out of a stock and it’s about to pick a direction.
And the thing that really got me was the relative strength. The Qs were rolling over hard. Semis were getting destroyed. This chart was just sitting there refusing to participate.
That’s the tell. When the whole market is ugly and one name won’t go down, somebody is buying it for a reason, and I’ll take that over any headline about the company every single time.
Wednesday it made a new high while the Dow got taken apart. And today it’s up another 3%.
That’s 11% in two sessions off Tuesday’s close.
I told Watchlist readers to check out the September $300 calls. They were pretty far out of the money on Tuesday. They’re basically at the money now.
Cha-ching. If you’re a Watchlist subscriber, let us know if you took action on SNOW right here.
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