The Shakedown 10/11/20

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LAST WEEK, S&P 500 (+3.90%)

Monday: +1.77%

Tuesday: -1.42%

Wednesday: +1.74%

Thursday: +0.89%

Friday: +0.89%

Last week we saw the market rise most of the week on the back of stimulus hopes. We had a hiccup Tuesday when Trump reneged on getting a deal done, only to quickly back track just a day later. Election season has the market's sensitivity to headlines elevated as we saw with the vicious sell off Tuesday, so keeping that in the back of my mind when adding risk this week. The market did close very strong for the week over key resistance areas, which is always positive to see.

 

The last we heard about the stimulus deal, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued negotiations over the weekend after President Donald Trump on Friday raised the size of the stimulus deal he's willing to accept to $1.8 trillion. But, Speaker Pelosi said Sunday that talks were at an impasse signaling we still may have some time before we see a deal done. We'll keep dealing with those headlines along with the election being just over three weeks away.

 

We've been so busy dealing with headlines, earnings season snuck right up on us. We have the banks kicking us off this week then it gets a little more fun in the weeks to come. Apple event Tuesday along with it being Amazon Prime Day.

 

Overall, we've had 4 of 5 days rip higher so the best entries in many names are behind us. Would give this week a 4/10 for amount of new setups I saw out there. 

Earnings Season Kicks Off This Week!

Click the above picture for a full list of the companies reporting this week

CELH Long

CELH is actually the Celsius Energy Drinks. They are experiencing a ton of growth and had very impressive sales numbers this past quarter, accelerating that growth during a pandemic that shut down Gym's and Fitness facilities, which theoretically should have crushed this business. Celsius was able to prove a very loyal customer base.

Technically, we got great information Friday as sellers tried to take this down through some massive support. Buyers came through on huge volume at that inflection point and was able to turn the stock higher. Failed moves yield fast moves. Watching for an entry first through $23 based on the hourly chart. Technical trigger would be $24 here but support down at $19. This is a very high beta stock so a $10-12 upside is not out of the question. 

Trigger: $23/24

Stop: $19.49

Target: $30-34+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!


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