Shorts got punished once again last week as the market ripped higher out of a consolidation area creating a three day run to end the week. Last week's newsletter pointed out the $240-243 area in the SPY was an inflection point and above $243 I would look to be more aggressive, while below $240 I would be more hands off. Wednesday drove us right through $243 which triggered the run to end the week.
Bank controlled the headlines as Citi, PNC, JP Morgan & Well Fargo all beat earnings. Huge slate of earnings next week as over 200 companies report including NFLX, JNJ, LMT, WHR and many more.
We've been staring at this huge level in AVXS for weeks at this point. With an inside week just below resistance, I believe a swift break of $82.50 will trigger a big breakout in this one. Earnings not until 8/10 so we still have a few weeks for this one to work.
I'm sure more setups will develop throughout the week as we see some strong earnings movers. It's of the utmost importance to keep track of the stocks that had the best earnings reaction. NKE is a great example where we've been staring at it for a couple weeks just waiting for a tight entry, which I'm confident will come.