Buying or not to buy the dip?

The markets tried to rebound on Friday. They started strongly and made an attempt to claw back previous day losses. However the rally fizzled out towards the end which indicates that the short rally was more of a fourth wave within a third wave. The fifth wave of the bigger third wave will probably see the 4300-4275 levels on the broad market being reached. 

I like to use the broad market as a gauge and then compare it to the stocks I am confident in to look for divergences etc. And with regards to big tech, I believe Microsoft and Google will do well long term. However, I believe their values will compress further in the near future and technically, I find more downside risks than upside risks. As such I am comfortable with my small position in Microsoft. Google was already divested two weeks back when I believe the market was showing signs of weakness and Google was showing big resistance overhead from multiple technical analysis methodologies which were showing the same resistances from Elliot Wave to Gann cycles.

So at the moment, I do not intend to add to these. There are other attractive names that I believe are showing better reward potentials and are worth buying on this dip on a tight stop. Some of these include names such as Crowdstrike, Super Micro as well as Enphase which I believe is in a basing bottoming process.

Disclaimer: Please kindly do your own due diligence as this is a sharing article and in no means financial advise. I am just sharing my opinions and thoughts.

Thanks for reading my commentary. Hope it helps!

Stay safe! 😊

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$Advanced Micro Devices(AMD)$ 

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