Hi Mr. Marty,

In yesterday's post-market video you stated "they are buying the dip" (the SPY bounced off it's 10 day ma). My question is, is there a reliable metric (put-call ratio, advance / decline line, new 52 week highs) that you go by in order to determine market strength? If so, can you please share your wisdom? Thanks for all you do 🙂

Ps. Got stopped out of LEU yesterday when it hit my stop-loss (of course, low of the day), so funny 🙂

During OpEx week it is common for stocks to take out stops and then run higher. Do not feel bad as that is a common occurrence and part of trading. See the price action in ALAB the past two sessions.

The only metric I use for "buying the dip" is moving averages. Actually, a better term would be to "buy the bounce, after the dip" as we never know how low they will go and/or where they will find support.

Each stock has its own personality, and finds support  at different moving averages. IREN is a good example of a strong stock finding support at its 5ema consistently, and then bouncing. Yesterday, IREN pulled back to its 5ema, and I was watching for a bounce. I would not buy that stock until it starts to show support at that level and begins to bounce.  That is a strong stock making higher highs, and higher lows, and trading in a nice uptrend and finding support. It is an easy pattern to trade. That is, until the pattern changes, and they always do.