TE Shake Down

TE Shakedown 7/9/17

The market gave a relief bounce Friday at a very important support level. Banks and Airlines have been leading the way the past couple weeks, but we finally saw a bounce in tech names Friday. This much needed bounced repaired many charts for support-buy type entries. We'll see if this holds next week. It has not been an easy trading environment as a seemingly top has been trying to form - leading to chop everywhere you look. Last week, I took the least amount of trades in a week I have in over a year - 3 (STLD, AAOI, SWIR). Very telling information. With the bounce Friday repairing many charts, we'll see if we can see follow through as the market nears an inflection point ---- or if this is just another trap before we once again move lower.

Onto Some Charts!

EARNINGS SEASON IS UPON US

Earnings season is officially upon us folks. Earnings season is when traders like ourselves truly eat. Last earnings season was certainly one giant feast and I would like to treat this one the same. There are no easier / high probability / tight risk / huge upside setups like post-earnings bases. Trust me on that one. 

The season really gets started towards the end of the week, once the big banks and airlines begin to report. The big banks usually set the tone for the whole season, so it will be key to see how they react as a sector, especially since they've been so hot. Do they continue the run or do they rotate money out of the sector? About 30 companies report next week, and then we really get going with about 200 companies reporting.

Monday: CUDA

Tuesday: PEP, AIR

Wednesday: OZRK, FAST

Thursday: DAL, FIZZ

Friday: C, INFY, JPM, PNC, WFC

Actionable Charts

Trade of the Week - MOMO Long

See you in the chat Monday.

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