The Shakedown 1/18/20

Can't Fight Price

We have a short week this week with markets closed Monday for Martin Luther King Day. It's no secret at this point markets have been absolutely raging and are pretty overbought no matter which way you slice them. At some point the trend will have to break and we will see volatility again, that is no question. However, trying to time that day becomes very difficult as we can see with the market breaking out over the course of Thursday and Friday.

We got the First Round of the Trade Deal signed and I over-anticipated it to be a 'sell the news' event and the market just continued to climb higher. The fact is this continues until it doesn't. Until we see some hardcore selling and that day of reckoning comes, we are in this hyper uptrend environment.

The problem with the environment at this point is that all the best setups have broken out, and after a deep scan this weekend, there isn't a whole lot of new setups that I'm really salivating over at the moment. Usually that means it's a good time to continue trailing your swings and be patient with new trades as we are just beginning to get into the thick of earnings season this week. 

Earnings season began last week and only gets better and better from here. 

Names I'm most looking forward to this week:

(In order of the dates they report)

FLIR Long

We've been staring at FLIR's daily chart waiting for this base to properly setup ever since their massive comeback last earnings. With a tight daily flag in front of the base resistance, this looks to finally be setting up just how we like it.

This is definitely a more macro trade, similar to what EA gave us when it finally began to break in late November. So if you take this trade, be patient with it. It still has about 3.5 weeks until their next earnings report so if it breaks this week, there is plenty of time for this to give a pre earnings run.

The weekly chart shows the massive base finally getting ready to trigger through 155.

Trigger: $55

Stop: $53.89

Target: $58-60+

Hope to see you in the chat Monday!

Watchlist coming in the following email.